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	-	$ 50,900
Accounts receivable	$ 40,400	-
Additional paid-in capital	-	50,000
Buildings (net) (4-year remaining life)	128,000	-
Cash and short-term investments	68,750
Common stock	-	250,000
Equipment (net) (5-year remaining life)	407,500	-
Inventory	119,000	-
Land	82,000	-
Long-term liabilities (mature 12/31/26)	-	171,500
Retained earnings, 1/1/23	-	338,850
Supplies	15,600	-
Totals	$ 861,250	$ 861,250

During 2023, Abernethy reported net income of $124,000 while declaring and paying dividends of $16,000. During 2024, Abernethy reported net income of $164,750 while declaring and paying dividends of $60,000.

Assume that Chapman Company acquired Abernethys common stock by paying $802,850 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.

Required:

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

1. Prepare entry S to eliminate stockholders' equity accounts of subsidiary.
2. Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.
3. Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.
4. Prepare entry D to eliminate intra-entity dividend transfers.
5. Prepare entry E to recognize 2023 amortization expense.
6. Prepare entry *C to convert parent company figures to equity method.
7. Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2024.
8. Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.
9. Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.
10. Prepare entry D to eliminate Intra-entity dividend transfers.
11. Prepare entry E to recognize 2024 amortization expense.