During 2022, Princess resold inventory purchased from Sonny in 2021. Ithad cost Sonny$44,000 to produce the inventory, and Princess had purchased it for $59,000. In 2022.Princess had purchased inventory for $40,000 and sold it to Sonny for $60.000. AtDecember 31, 2022, Sonny continued to hold $27,000 of the inventory.Sonny had issued $200,000 of8 percent, 10-year bonds on January 1, 2019, at 104Princess had purchased $80,000 of the bonds from one of the original owners for$78400 on December 31, 2020. Both companies use straight-line write-off of premiumsand discounts. Interestis paid annually on December 31. Assume Princess uses the fullequity method. At the end of2022 Sonny owed Princess $7,000Required: a. Prepare the journal entry to record interest expense for Sonny for 2022b. Prepare the journal entry to record interest income for Princess for 2022c. Prepare a consolidation worksheet for 2022 in good form.d. Prepare consolidated multiple-step income statement, statement of retained earningsand classified balance sheet for Princess Corporation and Sonny company

Answer rating: 100% (QA)

a Journal Entry for Sonny to Record Interest Expense for 2022 bash Copy code Dec 31 2022 Interest Ex... View the full answer