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

following trial balance:

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 by paying $$630,150$ in cash. All of Abernethy's accounts are

estimated to have a falr value approximately equal to present book values. Chapman uses the partial equity method to account for its

Investment.

Requlred:

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

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

Consolidation

Worksheet Entries

$8....$

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

Note: Enter debits before credits.

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

Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.

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

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

Prepare entry E to recognize $2023$ amortization expense.

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

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

Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.

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

Prepare entry D to eliminate Intra$-$entity dividend transfers.

Prepare entry E to recognize $2024$ amortization expense.