Pruitt Corporation owns $90\%$ of the common stock of Sedbrook Company. The stock was purchased for $$544,590$ on January $1,2012,$ when Sedbrook Company's retained earnings were $$100,100.$ Preclosing trial balances for the two companies at December $31,2016,$ are presented here:

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

$|$ Cash $|82,500|79,200|$

$|$ Accounts Receivable $($net$)|211,100|112,500|$

$|$ Inventory $1/1|151,500|110,500|$

$|$ Investment in Sedbrook Co$.|564,430|-|$

$|$ Other Assets $|504,600|397,700|$

$|$ Dividends Declared $|99,500|30,200|$

$|$ Purchases $|851,200|351,200|$

$|$ Other Expenses $|180,300|137,700|$

$||2,645,130$$ $|1,219,000$$ $|$

$|$ Accounts Payable $|69,800|30,100|$

$|$ Other Liabilities $|74,600|39,800|$

$|$ Common Stock $|803,400|505,000|$

$|$ Retained Earnings $(1/1)|533,200|120,200|$

$|$ Sales $|$ $$1,105,000$$ $|523,900|$

$|$ Equity in Subsidiary Income $|59,130|-|$

$||2,645,130|1,219,000|$

$|$ Ending Inventory $|202,000|118,800|$

The January $1,2016,$ inventory of Sedbrook Company includes $$30,200$ of profit recorded by Pruitt Corporation on $2015$ sales. During $2016,$ Pruitt Corporation made intercompany sales of $$199,300$ with a markup of $25\%$ on cost$.$ The ending inventory of Sedbrook Company includes goods purchased in $2016$ from Pruitt for $$50,200.$ Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company.

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

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