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Punk Corporation purchased 90 percent of Soul Companys voting common shares on January 1, 20X2, at underlying book value. At that date, the fair value

Punk Corporation purchased 90 percent of Soul Companys voting common shares on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soul Company. Punk also purchased $94,000 of 6 percent, five-year bonds directly from Soul on January 1, 20X2, for $98,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31, 20X4, are as follows:

Punk Corporation Soul Company
Item Debit Credit Debit Credit
Cash & Receivables $ 26,000 $ 40,600
Inventory 174,000 78,000
Buildings & Equipment 418,000 245,000
Investment in Soul Company Stock 125,424
Investment in Soul Company Bonds 95,600
Cost of Goods Sold 80,000 73,800
Depreciation Expense 18,000 13,000
Interest Expense 15,640 4,840
Dividends Declared 28,000 18,000
Accumulated Depreciation $ 136,000 $ 76,000
Current Payables 112,200 52,640
Bonds Payable 194,000 94,000
Bond Premium 1,600
Common Stock 110,000 70,000
Retained Earnings 227,000 40,000
Sales 154,000 139,000
Interest Income 4,840
Income from Soul Company Stock 42,624
Total $ 980,664 $ 980,664 $ 473,240 $ 473,240

.a. Prepare the journal entry or entries for 20X4 on Punks books related to its investment in Soul Company stock. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare the journal entry or entries for 20X4 on Punks books related to its investment in Soul Company bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. Prepare the journal entry or entries for 20X4 on Souls books related to its bonds payable. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

e. Prepare a three-part consolidated worksheet for 20X4. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

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