Big Limited has three subsidiaries, all 80% owned, and, at December 31, 20X5, they have the following statements of financial position:

Selected SFP information of Big Limited as at December 31, 20X5, with respect to each subsidiary, is as follows:

The investment in Sub account for each subsidiary is kept on the equity basis and includes all entries for 20X5, with the exception of the following.

On the last day of the year, after all the accounts had been brought up to date but before the closing entries had been made, the subsidiaries had the following transactions:

1. Sub 1 Limited issued a 100% stock dividend to all common shareholders.

2. Sub 2 Limited issued shares equal to 10%, or 10,000 shares of the present outstanding amount, to the non-controlling interest shareholders for $38 per share.

3. Sub 3 Limited purchased and retired 10% or 1,000 shares of the outstanding shares from the non-controlling interest for a price of $150 per share. Big Limited will consolidate the subsidiaries but has kept the investment in subsidiary accounts on the equity basis.

Required
Considering that the parent company is using the equity method for its investment in subsidiary accounts, prepare a separate journal entry(ies) to record the above events for each subsidiary on the parent company€™s books. If no journal entry on the parent€™s books is needed, explain why. Indicate any gain or loss that would appear on the consolidated financial statements. If no gain or loss is present, explain why. Support your answer fully.

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Sub 1 Limited $ 200,000 Sub 3 Limited $ 140,000 Sub 2 Limited $ 120,000 Cash Receivables 400,000 230,000 250,000 1,040,000 610,000 Inventory 590,000 Capital assets, net 920,000 1,320,000 890,000 $1,830,000 $ 140,000 $2,960,000 $ 260,000 $1,920,000 $ 150,000 Current liabilities Common shares 600,000 400,000 500,000 Retained earnings 2,100,000 1,290,000 1,270,000 $2,960,000 $1,830,000 $1,920,000 Sub 1 Limited Sub 2 Limited Sub 3 Limited Investment in Sub Capital asset, unamortized revaluation Goodwill Number of shares outstanding $2,470,000 $1,252,000 $1,536,000 300,000 (100,000) 120,000 10,000 280,000 100,000 100,000