Problem $8-14$A $($Static$)$ Consolidation Worksheet with Sale of Bonds to Subsidiary $($Straight$-$Line Method$)$ LO $8-2$ Porter Company purchased $60$ percent ownership of Service Corporation on January $1,20$X$1,$ at underlying book value. At that date, the fair value of the noncontrolling interest was equal to $40$ percent of Service$$s book value. On January $1,20$X$1,$ Porter sold $$80,000$ par value, $8$ percent, five$-$year bonds directly to Service for $$82,000$ and the market interest rate was $7$ percent. The bonds pay interest annually on December $31.$ Porter uses the fully adjusted equity method in accounting for its ownership of Service. On December $31,20$X$2,$ the trial balances of the two companies are as follows: Note: Assume using straight$-$line amortization of bond discount or premium. ItemPorter CompanyService CorporationDebitCreditDebitCreditCash and Accounts Receivable$ $80,200$$ $40,000$Inventory$120,00065,000$Buildings and Equipment$500,000300,000$Investment in Service Corporation Stock$102,000$Investment in Porter Company Bonds$81,200$Cost of Goods Sold$99,80061,000$Depreciation Expense$25,00015,000$Interest Expense$6,00014,000$Dividends Declared$40,00010,000$Accumulated Depreciation$$$ $175,000$$ $75,000$Accounts Payable$68,80041,200$Bonds Payable$80,000200,000$Bond Premium$1,200$Common Stock$200,000100,000$Retained Earnings$230,00050,000$Sales$200,000114,000$Interest Income$6,000$Income from Service Corporation$18,000$Total$ $973,000$$ $973,000$$ $586,200$$ $586,200$ Required: Prepare the journal entry or entries for $20$X$2$ on Porter$$s books related to its investment in Service. Prepare the journal entry or entries for $20$X$2$ on Porter$$s books related to its bonds payable. Prepare the journal entry or entries for $20$X$2$ on Service$$s books related to its investment in Porter's bonds. Prepare the consolidation entries needed to complete a consolidated worksheet for $20$X$2.$ Prepare a three$-$part consolidated worksheet for $20$X$2.$