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 57,300 $ $ 42,200 50,000 214,000 82,250 250,000 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 375,000 90,500 117,000 170,000 409,650 16,000 $936,950 $ 936,950 During 2020, Abernethy reported net income of $117,500 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $171,250 while declaring and paying dividends of $55,000. Assume that Chapman Company acquired Abernethy's common stock for $860,500 in cash. As of January 1, 2020, Abernethy's land had a fair value of $132,000, its buildings were valued at $287,600, and its equipment was appraised at $352,500. 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 1 2 3 4 5 6 7 8 12 > Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Consolidation Worksheet Entries Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Consolidation Worksheet Entries Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Consolidation Worksheet Entries Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method. Note: Enter debits before credits. Accounts Debit Credit Date December 31, 2020 Consolidation Worksheet Entries Prepare entry D to eliminate intra-entity dividend transfers. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Consolidation Worksheet Entries Prepare entry E to recognize current year amortization expense. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Consolidation Worksheet Entries Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Consolidation Worksheet Entries Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Consolidation Worksheet Entries Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Consolidation Worksheet Entries Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Note: Enter debits before credits. Accounts Debit Credit Date December 31, 2021 Consolidation Worksheet Entries Prepare entry D to eliminate intra-entity dividend transfers. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Consolidation Worksheet Entries