Stake Company reported the following summarized balance sheet data as of December 31, 20X2: Cash Accounts...

Transcribed Image Text:

Stake Company reported the following summarized balance sheet data as of December 31, 20X2: Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable $ 34,000 82,000 Common Stock 92,000 Retained Earnings 291,000 (145,000) $ 354,000 Total Liabilities and Equities $ 41,000 130,000 183,000 $ 354,000 Stake Issues 4,400 additional shares of its $10 par value stock to its shareholders as a stock dividend on April 20, 20X3. The market price of Stake's shares at the time of the stock dividend is $60. Stake reports net Income of $34,000 and pays a $13,500 cash dividend in 20X3. Pole Company acquired 70 percent of Stake's common shares at book value on January 1, 20X1. 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 worksheet consolidation entries needed to prepare consolidated financial statements for 203. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list transaction llet No Event Accounts A 1 Common stock Retained earnings Income from Stake Company NCI in NI of Stake Company Dividends declared Stock dividends declared Investment in Stake Company NCI in NA of Stake Company B 2 No Transaction Recorded < Required A Required C > Debit Credit 174,000 183,000 44,000 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. view transaction list transaction list No Event Accounts A 1 Common stock Retained earnings Investment in Stake Company NCI in NA of Stake Company B 2 No Transaction Recorded < Required B Required C > Debit Credit Stake Company reported the following summarized balance sheet data as of December 31, 20X2: Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable $ 34,000 82,000 Common Stock 92,000 Retained Earnings 291,000 (145,000) $ 354,000 Total Liabilities and Equities $ 41,000 130,000 183,000 $ 354,000 Stake Issues 4,400 additional shares of its $10 par value stock to its shareholders as a stock dividend on April 20, 20X3. The market price of Stake's shares at the time of the stock dividend is $60. Stake reports net Income of $34,000 and pays a $13,500 cash dividend in 20X3. Pole Company acquired 70 percent of Stake's common shares at book value on January 1, 20X1. 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 worksheet consolidation entries needed to prepare consolidated financial statements for 203. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list transaction llet No Event Accounts A 1 Common stock Retained earnings Income from Stake Company NCI in NI of Stake Company Dividends declared Stock dividends declared Investment in Stake Company NCI in NA of Stake Company B 2 No Transaction Recorded < Required A Required C > Debit Credit 174,000 183,000 44,000 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. view transaction list transaction list No Event Accounts A 1 Common stock Retained earnings Investment in Stake Company NCI in NA of Stake Company B 2 No Transaction Recorded < Required B Required C > Debit Credit