Ruby Company is a 75% subsidiary of Jewel Corporation. During 20X1, Ruby sold $150,000 of goods to Jewel, realizing a gross profit of 20%. Jewel sold all of these goods to outside parties for $200,000. All of the transactions were for cash.

Requirements:

1. Prepare all entries required on the books of Ruby and Jewel to record the above transactions.
2. Prepare all elimination entries necessary to account for the above activity.