Apple Contractors, an 80%-owned subsidiary, is constructing a warehouse for its parent, Plum Corporation. The following information is available on December 31, 2011:

Percent of completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60%

Costs incurred to date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000

Estimated costs to complete. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

Contract price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000

Amount billed to date (no amounts collected) . . . . . . . . . . . . . . . 150,000

Apple uses the percentage-of-completion method to account for its long-term contracts.

Record the journal entries that each of the two companies would have made relative to the construction. Prepare a partial trial balance using the data from your entries, and show the eliminations relating to the contract for the December 31, 2011, consolidated worksheet.