Exercise 9-12 (Algo) Subsidiary Stock Dividend LO 9-5 Stake Company reported the following summarized balance sheet data as of December 31, 20x2 Cash $36, Accounts Payable $3,000 Retained Earnings Less: Accumulated Depreciation Stake issues 4,400 additional shares of its $10 per 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 $55. Stake reports net income of $33,000 and pays a $12.500 cash dividend in 20x3. Pole Company acquired 70 percent of Stake's common shares at book value on January 1, 2011. 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 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. 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 Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acco A Record the basic consolidation entry. Description 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 Record the basic consolidation entry Description Credit Prepare the journal entries recorded by Stake and Pole at the time the stack dividend is declared and distributed Note: If no entry quired for a transaction/event, select "No journal entry required in the first account field. Company Record the issuance of a stock dividend by Stake Company Debit Credit 44.000 Note -journal entry has been entered Record entry journal entry has been entered Credit Clear entry view consolidation entries