P 11-2 Consolidated balance sheet and income statement under entity theory Pus Inc. was recently offered a big government project. However, since it lacked the funds and personnel required to handle the project, Pus’s management decided to create a joint venture with Tod Unincorporated, using a venture investment of $300,000 for 50 percent ownership on January 1, 2014. Comparative trial balance at December 31, 2014, is as follows (in thousands):

Pus Tod Debits Other assets $800 $680 Investment in Tod—beginning 300 Expenses including COGS 100 100

$1,200 $780

(continued )

414 CHAPTER 11 Pus Tod Credits Other liabilities $120 $50 Common stocks ($10 par) 500 40 Retained earnings—beginning 280 Venture capital—beginning 600 Sales 300 130

$1,200 $780 ADDITIONAL INFORMATION 1. Tod’s net income during 2014 was $30,000.

2. Pus uses the equity method to account for transactions.

REQuIRED: Prepare a proportionate consolidated workpaper for Pus and Tod for reporting purposes.