S is an 80% owned subsidiary of P, Inc. The following facts apply to 2024:

On January 1, 2024, S held $60,000 of merchandise sold to it from P. P made sales to S during 2024 totaling $150,000. On December 31, 2024, S had $80,000 of such goods purchased from P in its ending inventory. P always sells to S at a 25% gross profit.

In 2024 P reported net income of $500,000 without including income from S. S reported net income of $200,000. P accounts for S using the equity method.

1. From the foregoing information, prepare the required consolidation entries for the 2024 consolidated worksheet in general journal form. For any debit or credit to retained earnings or to an income statement account, indicate whether it is the parent's or the subsidiary's retained earnings or income statement account.