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5 Prepare entry D to eliminate intra-entity dividend transfers. 6 Prepare entry E to recognize current year amortization expense. 7 Prepare entry C to convert

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5 Prepare entry D to eliminate intra-entity dividend transfers. 6 Prepare entry E to recognize current year amortization expense. 7 Prepare entry C to convert parent's beginning retained earnings to full accrual basis. 8 Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. 9 Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021 . 10 Prenare entru I to eliminate the income accrual for >021 Note : = journal entry has been entered Assume that Chapman Company acquired Abernethy's common stock for $866,800 in cash. As of January 1, 2020, Abernethy's land had a fair value of $110,900, its bulidings were valued at $232,400, and its equipment was appraised at $418,250. 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 first account field.) Chapman Company obtains 100 percent of Abernethy Company's stock on January 1,2020. As of that date, Abernethy has the following trial balance: During 2020. Abernethy reported not income of $99,000 while declaring and paying dividends of $12,000 During 2021 . Abernethy reported net income of $151,250 while declaring and poying dividends of $53,000 Assume that Chepman Company acquired Abernethy's common stock for $866,800 in cash. As of Januery 1,2020 , Abernethy's 1 Prepare entry C to convert parent's beginning retained earnings to full accrual basis. 2 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 3 Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. 4 Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using che equity method. 5 Prepare entry D to eliminate intra-entity dividend 8 Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. 9 Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. 10 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 transfers. 12 Prepare entry E to recognize current year amortization expense. Note : P= journal entry has been entered

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