On December 31,2013,Maria Corporation Has the Following Stockholders' Equity On January 1,2014,Maria Corporation Declared and Issued a 10% Stock

question 43

Essay

On December 31,2013,Maria Corporation has the following stockholders' equity:
$$\begin{array} { l l } \text { Common stock, \$10 par } & \$ 100,000 \\\text { Additional paid-in capital } & 20,000 \\\text { Retained earnings } & \$ 80,000 \\\text { Total stockholders' equity } & \$ 200,000\end{array}$$ On January 1,2014,Maria Corporation declared and issued a 10% stock dividend when the market price per share was $50.
On January 2,2014,James Corporation purchased an 80% interest in Maria Corporation for $160,000 from the open market.On January 2,2014,the fair value of Maria's individual assets and liabilities was equal to book value.
Required:
1.Prepare the journal entry(ies)for Maria Corporation on January 1,2014.
2.Prepare the journal entry(ies)for James Corporation on January 2,2014.
3.Prepare the elimination entry(ies)for consolidating work papers on January 2,2014.
4.Prepare the elimination entry(ies)for consolidating work papers on January 2,2014 if the 10% stock dividend is not declared and issued on January 1,2014.

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Definitions:

Neutron

One of the principal parts of an atom. The neutron has no charge and is part of the nucleus.

Alternating Current

Electrical current that periodically reverses direction, in contrast to direct current that flows in only one direction.

Omnidirectional

Characteristic of an antenna that can send or receive signals equally well in all directions.

Unidirectional

Moving or operating in a single direction, often used to describe devices that allow current to flow only one way, like diodes.