Pruitt Corporation owns $90\%$ of the common stock of Sedbrook Company. The stock was purchased for $$623,070$ on January $1,2012,$ when Sedbrook Company's retained earnings were $$95,900.$ Preclosing trial balances for the two companies at December $31,2016,$ are presented here:

$||$ Pruitt Corporation $|$ Sedbrook Company $|$

$|$ Cash $|90,700$$ $|95,500|$

$|$ Accounts Receivable $($net$)|245,700|135,200|$

$|$ Inventory $1/1|163,900|131,800|$

$|$ Investment in Sedbrook Co$.|623,070|-|$

$|$ Other Assets $|551,000|483,900|$

$|$ Dividends Declared $|110,800|34,800|$

$|$ Purchases $|936,900|418,500|$

$|$ Other Expenses $|197,300|163,300|$

$|$ Total $|2,919,370|1,463,000$$ $|$

$|$ Accounts Payable $|76,800|36,000|$

$|$ Other Liabilities $|119,700|47,300|$

$|$ Common Stock $|872,500|596,400|$

$|$ Retained Earnings $(1/1)|599,800|143,200|$

$|$ Sales $|$ $$1,219,250$$ $|640,100|$

$|$ Dividend Income $|31,320|-|$

$|$ Total $|2,919,370|1,463,000|$

$|$ Ending Inventory $|218,900|142,800|$

The January $1,2016,$ inventory of Sedbrook Company includes $$25,000$ of profit recorded by Pruitt Corporation on $2015$ sales. During $2016,$ Pruitt Corporation made intercompany sales of $$249,000$ with a markup of $20\%$ on cost$.$ The ending inventory of Sedbrook Company includes goods purchased in $2016$ from Pruitt for $$60,000.$

$\_\_\_\_\_\_$

PLEASE USE TEMPLATE ATTACHED

WILL RATE IF CORRECT

Prepare the consolidated statements workpaper for the year ended December $31,2016.($List Items that Increase retained earnings first.$)$

Income Statement

Retained Earnings Statement

Balance Sheet

Total