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 $100,000 of 6 percent, five-year bonds directly from Soul on January 1, 20X2, for $104,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31, 20X4, are as follows:

a. Prepare the journal entry or entries for 20X4 on Punks books related to its investment in Soul Company stock.

b. Prepare the journal entry or entries for 20X4 on Punks books related to its investment in Soul Company bonds.

c. Prepare the journal entry or entries for 20X4 on Souls books related to its bonds payable.

d. Prepare the consolidation entries needed to complete a consolidated worksheet for 20X4.

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.)

Punk Corporation Soul Compar Debit $ 22,000 165,000 400,000 121,500 101,600 86,000 20,000 16,000 30,000 Credit Debit $36,600 75,000 240,000 Credit Item Cash &Receivables Inventory Buildings & Equipment Investment in Soul Company Stock Investment in Soul Company Bonds Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Current Payables Bonds Payable Bond Premium Common Stock RetainedEarnings Sales Interest Income Income from Soul Company Stock Total 79,800 15,000 5,200 20,000 $140,000 92,400 200,000 $80,000 35,000 100,000 1,600 80,000 50,000 125,000 120,000 242,000 140,000 5,200 22,500 $962,100 $962,100 $471,600 $471,600 Journal entry worksheet Record the dividends from Soul. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet Record the equity-method income. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal Journal entry worksheet Record the entry for the interest income on the bond investment. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the entry for interest expense on bond investment. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Consolidation Worksheet Entries Record the basic consolidation entry Note: Enter debits before credits Event Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Record the entry to eliminate the intercompany bond holdings. Note: Enter debits before credits. Event Accounts Debit Credit 2 Record entry Clear entry view consolidation entries PUNK CORPORATION AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 20X4 Consolidation Entries Soul Punk Corp. Compan DR CR Consolidated Income Statement Sales Interest Income Less: COGS Less: Depreciation Expense Less: Interest Expenses Income from Soul Company Stock Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning Balance Net Income Less: Dividends Declared Ending Balance Balance Sheet Assets Cash and Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Soul Company Bonds Investment in Soul Company Stock Total Assets Liabilities & Equity Current Payable Bonds Payable Bond Premium Common Stock Retained Earnings NCI in NA of Soul Company Total Liabilities & Equity