1-create a journal entry *C to convert parents beginning retained earnings to full accrual basis2-prepare entry S to eliminate stockholders equity accounts of subsidiary3-prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value as goodwill4-prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using equity method 5-prepare entry D to eliminate intra-entity dividend transfer6-prepare entry E to recognize current year amortization expense7-prepare entry *C to convert parents beginning retained earnings to full accrual basis8-prepare entry S to eliminate stockholders equity accounts of subsidiary for 20219-prepare entry A to recognize allocations attributed to specific accounts as acquisition date for 202110-prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method 11-prepare entry D to eliminate intra-entity dividend transfers12-prepare entry E to recognize current year amortization expense

W Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Credit Accounts payable $ 54, 200 Accounts receivable $ 42, 900 Additional paid-in capital 50, 000 om y 8 01:27:26 Buildings (net) (4-year remaining life) 192 , 000 Cash and short-term investments 73 , 500 Common stock 250, 000 Equipment (net) (5-year remaining life) 245 , 000 Our a Inventory 99 , 000 Land 128 , 500 Long-term liabilities (mature 12/31/23) 160, 000 Retained earnings, 1/1/20 279, 200 Supplies 12, 500 'll let y Totals $793 , 400 $ 793 , 400 During 2020, Abernethy reported net income of $120,500 while declaring and paying We'll dividends of $15,000. During 2021, Abernethy reported net income of $172,000 while declaring and paying dividends of $40,000. Assume that Chapman Company acquired Abernethy's common stock for $714,650 in cash. As of January 1, 2020, Abernethy's land had a fair value of $139,200, it's buildings were valued at $262,000, and its equipment was appraised at $218,000. Chapman uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the