The correct spelling for the phrase "pulls out it" is actually "pulls it out." The use of the word "it" in this context serves as the direct object and should not be separated from the verb "pulls" with the word "out." The IPA phonetic transcription for "pulls it out" would be /pʊlz ɪt aʊt/, where the symbol "ʊ" represents the short "u" sound in "pulls" and "ɪ" represents the "ih" sound in "it."