Exercise 9-12 (Static) Subsidiary Stock Dividend LO 9-5 Stake Company reported the following summarized balance sheet data as of December 31, 202: Cash Accounts Receivable $ 50,000 100,000 200,000 $ 30,000 Accounts Payable 80,000 Common Stock Inventory 90,000 Retained Earnings Buildings and Equipment 270,000 Less: Accumulated Depreciation (120,000) Total Assets $ 350,000 Total Liabilities and Equities $ 350,000 Stake issues 4,000 additional shares of its $10 par value stock to its shareholders as a stock dividend on April 20, 203. The market price of Stake's shares at the time of the stock dividend is $40. Stake reports net income of $25,000 and pays a $10,000 cash dividend in 20X3. Pole Company acquired 70 percent of Stake's common shares at book value on January 1, 201. At that date, the fair value of the noncontrolling interest was equal to 30 percent of Stake's book value. Pole uses the equity method in accounting for its investment in Stake. Required: a. Prepare the journal entries recorded by Stake and Pole at the time the stock dividend is declared and distributed. b. Prepare the worksheet consolidation entries needed to prepare consolidated financial statements for 20X3. c. Prepare the worksheet consolidation entry needed to prepare a consolidated balance sheet on January 1.20X4. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the journal entries recorded by Stake and Pole at the time the stock dividend is declared and distributed. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. www.fchon lat Consolidation Worksheet Entries A Record the issuance of a stock dividend by Stake Company. Note: Enter debits before credits. Event 1 General Journal Debit Credit Common stock Record entry Clear entry www.consolidation untra Required: a. Prepare the journal entries recorded by Stake and Pole at the time the stock dividend is declared and distributed. b. Prepare the worksheet consolidation entries needed to prepare consolidated financial statements for 20X3. c. Prepare the worksheet consolidation entry needed to prepare a consolidated balance sheet on January 1,20X4. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the worksheet consolidation entries needed to prepare consolidated financial statements for 20x3. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries < A B Record the basic consolidation entry. Note: Enter debits before credits. Event 1 Accounts Debit Credit Record entry Clear entry www.consolidation entra < Required A Required C > > Required: a. Prepare the journal entries recorded by Stake and Pole at the time the stock dividend is declared and distributed. b. Prepare the worksheet consolidation entries needed to prepare consolidated financial statements for 20X3. c. Prepare the worksheet consolidation entry needed to prepare a consolidated balance sheet on January 1,20X4. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the worksheet consolidation entry needed to prepare a consolidated balance sheet on January 1, 20x4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries < A B Record the basic consolidation entry. Note: Enter debits before credits. Event 1 Accounts Debit Credit Record entry Clear entry www.consolidation entra < Required B Required C > >