Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.) Income Statement Pruitt Corporation S PRUITT CORPORATION AND SUBSIDIARY For the Year Ended December 31, 2016 Sedbrook Company Debit Eliminations S Credit Noncontrolling Interest S Consolidated Balances

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $544, 590 on January 1, 2012, when Sedbrook Company's retained earnings were $100,000. Preclosing trial balances for
the two companies at December 31, 2016, are presented here: The January 1, 2016, inventory of Sedbrook Company includes $30, 200 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation
made intercompany sales of $200,700 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $49,800. Pruitt Corporation uses the complete equity method
to record its investment in Sedbrook Company. Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.)
Transcribed Image Text:Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $544, 590 on January 1, 2012, when Sedbrook Company's retained earnings were $100,000. Preclosing trial balances for the two companies at December 31, 2016, are presented here: The January 1, 2016, inventory of Sedbrook Company includes $30, 200 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $200,700 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $49,800. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company. Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.)
Income Statement
Cost of Goods Sold:
Retained Earnings Statement
Balance Sheet
V
1/1 Noncontrolling Interest
Cash
12/31 Noncontrolling Interest
Accounts Receivable (net)
Inventory 1/1
Investment in Sedbrook Co.
Other Assets
Dividends Declared
Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.)
Purchases
Other Expenses
Accounts Payable
Other Liabilities
Common Stock
Retained Earnings (1/1)
Sales
Equity in Subsidiary Income
Ending Inventory
Pruitt
Corporation
Pruitt
Corporation
$83,400
Sedbrook
Company
211,800
149,800
566,220
499.400
100,100
845,000
180,500
$70,400
74,200
793,900
527,100
1,109,700
60,920
$2,636,220
$2,636,220 $1,218,500
$201,800
PRUITT CORPORATION AND SUBSIDIARY
For the Year Ended December 31,2016
Debit
Sedbrook
Company
$79,500
113,000
110,500
Eliminations
397,800
29.900
349,100
138,700
$30,200
39,900
505,100
119,800
523,500
$1,218,500
$120,000
Credit
Noncontrolling
Interest
Consolidated
Balances
Transcribed Image Text:Income Statement Cost of Goods Sold: Retained Earnings Statement Balance Sheet V 1/1 Noncontrolling Interest Cash 12/31 Noncontrolling Interest Accounts Receivable (net) Inventory 1/1 Investment in Sedbrook Co. Other Assets Dividends Declared Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.) Purchases Other Expenses Accounts Payable Other Liabilities Common Stock Retained Earnings (1/1) Sales Equity in Subsidiary Income Ending Inventory Pruitt Corporation Pruitt Corporation $83,400 Sedbrook Company 211,800 149,800 566,220 499.400 100,100 845,000 180,500 $70,400 74,200 793,900 527,100 1,109,700 60,920 $2,636,220 $2,636,220 $1,218,500 $201,800 PRUITT CORPORATION AND SUBSIDIARY For the Year Ended December 31,2016 Debit Sedbrook Company $79,500 113,000 110,500 Eliminations 397,800 29.900 349,100 138,700 $30,200 39,900 505,100 119,800 523,500 $1,218,500 $120,000 Credit Noncontrolling Interest Consolidated Balances
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