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This one is stumping me. Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1, 20x2, at underlying book value. At

This one is stumping me.

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Punk Corporation purchased 90 percent of Soul Company's 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 $87,000 of 6 percent, ve-year bonds directly from Soul on January 1, 20x2, for $91,000. 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 5 29,666 5 43,666 Inventory 186,666 92,666 Buildings 8. Equipment 469,666 245,666 Investment in Soul Companyr Stock 112,362 Investment in Soul Companyr Bonds 86,666 Cost of Goods Sold 25,666 66,666 Depreciation Expense 16,666 13,666 Interest Expense 15,226 4,426 Dividends Declared 26,666 16,666 Accumulated Depreciation $135,666 $ 25,666 Current Pay-ables 169,266 92,226 Bonds Payable 162,666 62,666 Bond Premium 1,666 Common Stock 165,666 55,666 Retained Earnings 232,666 35,666 Sales 144, 666 129, see Interest Income 4,426 Income from Soul Company Stock 36,562 Total $955,122 $955,122 $464,626 $464,626 Required: a. Prepare thejournal entry or entries for 20x4 on Punk's books related to its investment in Soul Company stock. [If no entry is required for a transactionfevent, select \"No journal entry required" in the rst account eld} View transaction "St Viewr transaction list Journal entry worksheet Record the dividends from Soul. Note: Enter debits before credits. Record entryl Clear entry View general journal b. Prepare thejournal entry or entries. for 20x4 on Punk's books related to its investment in Soul Company bonds. [If no entry is Journal entry worksheet Record the entry for the interest income on the bond investment. Note: Enter debits before credits. Record entry Clear entry View general journal :2. Prepare thejeurnal entry or entries for 20x4 en Soul's bee-ks related to its bonds payable. {If no entry is required for o transactionfeuent, select "Nojournal entry required" in the rst account eld.) Journal entry worksheet A Record the entry for interest expense on bond investment. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal d. Prepare the consolidation entries needed to complete a consolidated worksheet for 20X4. (If no entry is required for a ransaction/event, select "No journal entry required" in the first account field.)Consolidation Worksheet Entries A B Record the basic consolidation entry. Note: Enter debits before credits. Event Accounts Debit Credit 1 Record entry Clear entry view consolidation entriese. Prepare a threepart 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.) Income Statement Sales Interest Income Less: COGS Less: Depreciation Expense Less: Interest Expenses Income from Soul Companyr Stock Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Net Income Less: Divide n ds Declared Ending Balance Balance Sheet Assets

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