Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Credit 52,800 $ $ 49,500 50,000 174,000 84,000 250,000 Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Common stock Equipment (net) (5-year remaining life) Inventory Land Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 Supplies Totals 315,000 137,500 90,500 188,500 323,600 14,400 $864,900 $ 864,900 During 2020, Abernethy reported net income of $129,000 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $176,000 while declaring and paying dividends of $38,000. Assume that Chapman Company acquired Abernethy's common stock for $733,100 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,000, its buildings were valued at $242,000, and its equipment was appraised at $279,500. Chapman uses the equity method for this investment. Prepare 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.) Consolidation Worksheet Entries 2 3 4 Consolidation Worksheet Entries 12 Prepare entry to convert parent's beginning retained earings to full accrual basis. Prepare entry s to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits Note: Enter debits before credits Accounts Debit Credit Accounts Date December 31, 2020 Debit Credit Date December 31, 2020 Record entry Clear entry view consolidation entries Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Consolidation Worksheet Entries 5 6 7 12 > Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method. Note: Enter debts before credits Note: Enter debits before credits Accounts Debit Credit Date December 31, 2020 Accounts Debit Credit Date December 31, 2020 Record entry Clear entry view consolidation entries Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 3 4 Consolidation Worksheet Entries Prepare entry D to eliminate intra-entity dividend transfers. Prepare entry to recognize current year amortization expense. Note: Enter debits before credits Note: Enter debits before credits Accounts Debit Credit Accounts Debit Credit Date December 31, 2020 Date December 31, 2020 Worksheet Entries Worksheet Entries > Prepare entry "C to convert parent's beginning retained earnings to full accrual basis. Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. Note: Enter debits before credits Note: Enter debits before credits. Accounts Debit Credit Accounts Debit Credit Date December 31, 2021 Date December 31, 2021 Record entry Clear entry view consolidation entries Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 5 6 7 8 12 Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Consolidation Worksheet Entries 5 10 .... 12 > Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Note: Enter debts before credits. Note: Enter debits before credits Accounts Debit Credit Date December 31, 2021 Accounts Debit Credit Date December 31, 2021 Record entry Clear entry view consolidation entries Record entry Clear entry View consolidation entries Consolidation Worksheet Entries Prepare entry to recognize current year amortization expense. Note: Enter debits before credits. Note: Enter debits before credits Date Accounts Debit Credit Accounts Debit Credit December 31, 2021 Date December 31, 2021