xercise $2-12($Static$)$ Consolidation Entries for Wholly Owned Subsidiary LO $2-3,2-6$ Trim Corporation acquired $100$ percent of Round Corporation$$s voting common stock on January $1,20$X$2,$ for $$400,000.$ At that date, the book values and fair values of Round$$s assets and liabilities were equal. Round reported the following summarized balance sheet data: Assets$ $700,000$Accounts Payable$ $100,000$Bonds Payable$200,000$Common Stock$120,000$Retained Earnings$280,000$Total$ $700,000$Total$ $700,000$ Round reported net income of $$80,000$ for $20$X$2$ and paid dividends of $$25,000.$ Required: Give the journal entries recorded by Trim Corporation during $20$X$2$ on its books if Trim accounts for its investment in Round using the equity method. Give the consolidation entries needed at December $31,20$X$2,$ to prepare consolidated financial statements.