Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance Debit Credit $ 55,300 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 12/31/20) Retained earnings, 1/1/17 Supplies $ 45,800 50,000 197,000 81,500 250,000 345,000 124,500 125,000 176,500 402,900 15,900 $934,700 Totals 934,700 During 2017, Abernethy reported net income of $124,500 while declaring and paying dividends of $16,000. During 2018, Abernethy reported net income of $167,750 while declaring and paying dividends of $41,000 Assume that Chapman Company acquired Abernethy's common stock by paying $880,900 in cash. All of Abernethy's 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, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries 3 4 6 7 8 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 3 4 6 7 8 Prepare entry A to recognize goodwill portion of the original acquisition fair value Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 3 4 5 6 Prepare entry I to eliminate intra-entity income accrual for the current year based on the parent's usage of the partial equity method. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 4 5 6 8 Prepare entry D to eliminate intra-entity dividend transfers. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 4 5 6 Prepare entry E. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2017 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 4 5 6 Prepare entry *C. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 4 6 8 Prepare entry S to eliminate beginning of year stockholders' equity accounts of subsidiary-the retained earnings balance has been adjusted for 2017 income and dividends Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 2 3 4 6 7 8 Prepare entry A to recognize original goodwill balance. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries K1 4 5678 910 11 Prepare entry D to eliminate Intra-entity dividend transfers. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries 4 6 8 9 10 Prepare entry E Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2018 Record entry Clear entry view consolidation entries