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 $-$ $ $59,300$

Accounts receivable $ $44,300-$

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

Buildings $($net$)(4-$year remaining life$)137,000-$

Cash and short$-$term investments $73,750-$

Common stock $-250,000$

Equipment $($net$)(5-$year remaining life$)262,500-$

Inventory $126,500-$

Land $100,500-$

Long$-$term liabilities $($mature $12/31/26)-176,000$

Retained earnings, $1/1/23-227,850$

Supplies $18,600-$

Totals $ $763,150$ $ $763,150$

During $2023,$ Abernethy reported net income of $$96,000$ while declaring and paying dividends of $$12,000.$ During $2024,$ Abernethy reported net income of $$141,000$ while declaring and paying dividends of $$45,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$635,560$ in cash. Assume that the equipment and long$-$term liabilities had fair values of $$287,450$ and $$144,440,$ respectively, on the acquisition date. Chapman uses the initial value method to account for its 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.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 $-$ $ $59,300$

Accounts receivable $ $44,300-$

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

Buildings $($net$)(4-$year remaining life$)137,000-$

Cash and short$-$term investments $73,750-$

Common stock $-250,000$

Equipment $($net$)(5-$year remaining life$)262,500-$

Inventory $126,500-$

Land $100,500-$

Long$-$term liabilities $($mature $12/31/26)-176,000$

Retained earnings, $1/1/23-227,850$

Supplies $18,600-$

Totals $ $763,150$ $ $763,150$

During $2023,$ Abernethy reported net income of $$96,000$ while declaring and paying dividends of $$12,000.$ During $2024,$ Abernethy reported net income of $$141,000$ while declaring and paying dividends of $$45,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$635,560$ in cash. Assume that the equipment and long$-$term liabilities had fair values of $$287,450$ and $$144,440,$ respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.

Required:

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

Note: If no entry is required for a transaction$/$event$,$ sele

ct $"$No journal entry required" in the first account field.

$1)$ Prepare entry S to eliminate stockholders' equity accounts of subsidiary.

$2)$ Prepare entry A to recognize allocations in connection with acquisition$-$date fair values.

$3)$ Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$4)$ Prepare entry E to recognize $2023$ amortization expense.

$5)$ Prepare entry $*$C to convert parent company figures to equity method.

$6)$ Prepare entry S to eliminate stockholders' equity accounts of subsidiary for $2024.$

$7)$Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for $2024.$

$8)$ Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$9)$ Prepare entry E to recognize $2024$ amortization expense.