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Chapman Company obtains 1 0 0 percent of Abernethy Company s stock on January 1 , 2 0 2 3 . As of that date,
Chapman Company obtains percent of Abernethy Companys stock on January As of that date, Abernethy has the following trial balance: Items Debit Credit Accounts payable $ Accounts receivable $ Additional paidin capital Buildings netyear remaining life Cash and shortterm investments Common stock Equipment netyear remaining life Inventory Land Longterm liabilities mature Retained earnings, Supplies Totals $ $ During Abernethy reported net income of $ while declaring and paying dividends of $ During Abernethy reported net income of $ while declaring and paying dividends of $ Assume that Chapman Company acquired Abernethys common stock for $ in cash. Assume that the equipment and longterm liabilities had fair values of $ and $ respectively, on the acquisition date. Chapman uses the initial value method to account for its investment. Required: Prepare consolidation worksheet entries for December and December Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Chapman Company obtains percent of Abernethy Companys stock on January As of that date, Abernethy has the following trial balance:
Items Debit Credit
Accounts payable $
Accounts receivable $
Additional paidin capital
Buildings netyear remaining life
Cash and shortterm investments
Common stock
Equipment netyear remaining life
Inventory
Land
Longterm liabilities mature
Retained earnings,
Supplies
Totals $ $
During Abernethy reported net income of $ while declaring and paying dividends of $ During Abernethy reported net income of $ while declaring and paying dividends of $
Assume that Chapman Company acquired Abernethys common stock for $ in cash. Assume that the equipment and longterm liabilities had fair values of $ and $ respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.
Required:
Prepare consolidation worksheet entries for December and December
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
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