Combined Income and Retained
Earnings Statement for the Year
Ended December 31, 2011					Adj/Cons			Total
		80%			Entries			Consolidate
	Pet	She		Ref	Dr	Cr	Ref	Total
Sales	$ 180,000.0	$ 50,000.0						230,000.0
Interco sales		50,000.0						50,000.0
Income from She	$ 15,600.0
Interest income		10,000.0						10,000.0
Cost of goods sold	(110,000.0)	(30,000.0)						(140,000.0)
Interco cost		(30,000.0)						(30,000.0)
Operating expenses	(30,000.0)	(18,000.0)						(48,000.0)
Interest expense	(18,000.0)							(18,000.0)
Controlling share of net income	$ 37,600.0	$ 32,000.0						$ 54,000.0
Add: Beginning retained earnings	294,000.0	100,000.0						394,000.0
Deduct: Dividends	(20,000.0)	(15,000.0)						(35,000.0)
Ending retained earnings	$ 311,600.0	$ 117,000.0						$ 413,000.0
Balance Sheet at December 31, 2011
Cash	$ 56,000	$ 41,000						97,000.0
Accounts receivable	120,000.0	60,000.0						180,000.0
Dividends receivable	12,000.0							12,000.0
Inventories	100,000.0	50,000.0						150,000.0
Plant and equipment	500,000.0	200,000.0						700,000.0
Accumulated depreciation	(100,000.0)	(50,000.0)						(150,000.0)
Investment in She stock	323,600.0							323,600.0
Investment in Pet bonds		100,000.0						100,000.0
Total assets	$ 1,011,600.0	$ 401,000.0						$ 1,412,600.0
Accounts payable	$ 80,000.0	$ 69,000.0						149,000.0
Dividends payable	20,000.0	15,000.0						35,000.0
10% bonds payable	200,000.0							200,000.0
Common stock	400,000.0	200,000.0						600,000.0
Retained earnings	311,600.0	117,000.0						428,600.0
Total equities	$ 1,011,600.0	$ 401,000.0			$ -	$ -		$ 1,412,600.0
	0.0	0.0						0.0