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	-	$ 51,500
Accounts receivable	$ 46,500	-
Additional paid-in capital	-	50,000
Buildings (net) (4-year remaining life)	190,000	-
Cash and short-term investments	67,750	-
Common stock	-	250,000
Equipment (net) (5-year remaining life)	442,500	-
Inventory	107,000	-
Land	93,500	-
Long-term liabilities (mature 12/31/26)	-	166,500
Retained earnings, 1/1/23	-	448,250
Supplies	19,000	-
Totals	$ 966,250	$ 966,250

During 2023, Abernethy reported net income of $99,000 while declaring and paying dividends of $12,000. During 2024, Abernethy reported net income of $151,250 while declaring and paying dividends of $53,000.

Assume that Chapman Company acquired Abernethys common stock for $866,800 in cash. As of January 1, 2023, Abernethys land had a fair value of $110,900, its buildings were valued at $232,400, and its equipment was appraised at $418,250. Chapman uses the equity method for this investment.

Required:

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

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. 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. Note : = journal entry has been entered 11 Prepare entry D to eliminate intra-entity dividend transfers. 12 Prepare entry E to recognize current year amortization expense. Note : O= journal entry has been entered 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 $99,000 while declaring and paying dividends of $12,000. During 2024, Abernethy reported net income of $151,250 while declaring and paying dividends of $53,000. Assume that Chapman Company acquired Abernethy's common stock for $866,800 in cash. As of January 1, 2023, Abernethy's land had a fair value of $110,900, its buildings were valued at $232,400, and its equipment was appraised at $418,250. 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