Chapman Company obtains $100$ percent of Abernethy Company$$s stock on January $1,2023.$ As of that date, Abernethy has the following trial balance:

Items Debit Credit

Accounts payable $-$ $ $55,100$

Accounts receivable $ $44,700-$

Additional paid$-$in capital $-50,000$

Buildings $($net$)(4-$year remaining life$)163,000-$

Cash and short$-$term investments $83,750-$

Common stock $-250,000$

Equipment $($net$)(5-$year remaining life$)207,500-$

Inventory $122,000-$

Land $85,500-$

Long$-$term liabilities $($mature $12/31/26)-162,500$

Retained earnings, $1/1/23-202,150$

Supplies $13,300-$

Totals $ $719,750$ $ $719,750$

During $2023,$ Abernethy reported net income of $$105,000$ while declaring and paying dividends of $$13,000.$ During $2024,$ Abernethy reported net income of $$136,750$ while declaring and paying dividends of $$36,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$605,600$ in cash. As of January $1,2023,$ Abernethy$$s land had a fair value of $$101,800,$ its buildings were valued at $$227,400,$ and its equipment was appraised at $$164,500.$ Chapman uses the equity method for this investment.

Required:

Prepare consolidation worksheet entries for December $31,2023,$ and December $31,2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$1)$ 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 specific accounts at acquisition date.

$4)$Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$5)$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 $2024.$

$9)$Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for $2024.$

$10)$Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$11)$Prepare entry D to eliminate intra$-$entity dividend transfers.

$12)$Prepare entry E to recognize current year amortization expense.