On January 1, 2010, Page Company acquired an 80% interest in Sterling Company for $1,070,000. Sterling reported common stock of $1,000,000 and retained earnings of $400,000 on this date. Any difference between implied value and the book value interest acquired is attributable to land.

Other information available for Sterling Company is shown below:

Net IncomeCash Dividends

2010$130,000$160,000

Page Company uses the cost method to account for its investment in Sterling Company.

Required:

A.Prepare the general journal entries for 2010 to record the receipt of the cash dividends.

B.Prepare in general journal form the workpaper entries necessary in the consolidated statements workpaper for the year end December 31, 2010.