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c. Prepare the consolidation entry or entries related to the intercompany sale of equipment needed at December 31 , 207, to prepare a full set of consolidated financial statements. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Note: Enter debits before credits. Prepare the consolidation entry or entries related to the equipment required at January 1,208, to prepare a consolidated balance sheet only. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the entry to eliminate the gain on the equipment and to correct the asset's basis. Note: Enter debits before credits. Prepare the journal entries recorded by Sheet during 207 to record the purchase of equipment and year-end depreciation expense. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Consolidation Worksheet Entries Record the entry to adjust Accumulated Depreciation. Note: Enter debits before credits. On January 1, 20X7, Pillow Corporation sold to Sheet Corporation equipment it had purchased for $150,000 and used for eight years. Pillow recoided a gain of $14,000 on the sale. The equipment has a total useful life of 15 years and is depreciated on a straight-line basis. Pillow holds 70 percent of Sheet's voting common shares. Required: 3. Prepare the journal entry made by Pillow on January 1,20X7, to record the sale of equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field

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