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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 100 percent of Abernethy Companys stock on January 1,2023. As of that date, Abernethy has the following trial balance:
Items Debit Credit
Accounts payable - $ 56,400
Accounts receivable $ 43,900-
Additional paid-in capital -50,000
Buildings (net)(4-year remaining life)217,000-
Cash and short-term investments 76,750
Common stock -250,000
Equipment (net)(5-year remaining life)367,500-
Inventory 96,500-
Land 122,000-
Long-term liabilities (mature 12/31/26)-182,500
Retained earnings, 1/1/23-396,250
Supplies 11,500-
Totals $ 935,150 $ 935,150
During 2023, Abernethy reported net income of $103,500 while declaring and paying dividends of $13,000. During 2024, Abernethy reported net income of $145,250 while declaring and paying dividends of $47,000.
Assume that Chapman Company acquired Abernethys common stock by paying $906,250 in cash. All of Abernethys accounts are estimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to account for its investment.
Required:
Prepare the 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. 1Prepare entry S to eliminate stockholders' equity accounts of subsidiary.
2Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.
3Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.
4Prepare entry D to eliminate intra-entity dividend transfers.
5Prepare entry E to recognize 2023 amortization expense.
6Prepare entry *C to convert parent company figures to equity method.
7Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2024.
8Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.
9Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

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