Chapman Company obtains 100 percent of Abernethy Companys stock on January 1, 2020. As of that date, Abernethy has the following trial balance:

	Debit			Credit
Accounts payable				$	58,900
Accounts receivable	$	41,500
Additional paid-in capital					50,000
Buildings (net) (4-year remaining life)		211,000
Cash and short-term investments		70,750
Common stock					250,000
Equipment (net) (5-year remaining life)		430,000
Inventory		139,000
Land		121,500
Long-term liabilities (mature 12/31/23)					174,000
Retained earnings, 1/1/20					498,450
Supplies		17,600
Totals	$	1,031,350		$	1,031,350

During 2020, Abernethy reported net income of $120,000 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $170,000 while declaring and paying dividends of $48,000.

Assume that Chapman Company acquired Abernethys common stock by paying $922,450 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.

Prepare the consolidation worksheet entries for December 31, 2020, and December 31, 2021. (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 goodwill portion of the original acquisition fair value.

3Prepare entry I to eliminate intra-entity income accrual for the current year based on the parent's usage of the partial equity method.

4Prepare entry D to eliminate intra-entity dividend transfers.

5Prepare entry E to recognize 2020 amortization expense.

6Prepare entry *C to convert parent company figures to equity method.

7Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021.

8Prepare entry A to recognize original goodwill balance.

9Prepare entry I to eliminate Intra-entity Income accrual for the current year.

10Prepare entry D to eliminate Intra-entity dividend transfers.

11Prepare entry E to recognize 2021 amortization expense.