Shell Company, an 85% owned subsidiary of Plaster Company, sells merchandise to Plaster Company at a markup of 20% of selling price. During 2014 and 2015, intercompany sales amounted to $442,500 and $386,250, respectively. At the end of 2014, Plaster had one-half of the goods that it purchased that year from Shell in its end- ing inventory. Plasters 2015 ending inventory contained one-fifth of that years purchases from Shell. There were no intercompany sales prior to 2014. Plaster had net income in 2014 of $750,000 from its own operations and in 2015 its independent income was $780,000. Shell reported net income of $322,500 and $335,400 for 2014 and 2015, respectively.

A. Prepare in general journal form all entries necessary on the consolidated financial statement workpapers to eliminate the effects of the intercompany sales for each of the years 2014 and 2015