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Check my w Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial

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Check my w Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance: Credit $ 50,000 Debit 10 Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Common stock points $ 40,000 50,000 Skipped 120,000 60,000 250, 000 Equipment (net) (5-year remaining life) Inventory Land Long-term liabilities (mature 12/31/20) Retained earnings, 1/1/17 Supplies 200,000 90,000 0, 000 eBook 150,000 100, 000 10,000 6600,000 600, 000 Totals Print During 2017, Abernethy reported net income of $80,000 while declaring and paying dividends of $10,000. During 2018, Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000. References Assume that Chapman Company acquired Abernethy's common stock by paying $520,000 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.) LO 1 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 2 Prepare entry A to recognize goodwill portion of the original acquisition fair value. 3 Prepare entry I to eliminate intra-entity income accrual for the current year based on the parent's usage of the partial equity method. 4 Prepare entry D to eliminate intra-entity dividend transfers. 5 Prepare entry E to recognize 2017 amortization expense. 5 Prepare entry E to recognize 2017 amortization expense. 6 Prepare entry *C to recognize 2018 amortization expense. 7 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. 8 Prepare entry A to recognize original goodwill balance. Prepare entry A to recognize original goodwill balance. Prepare entry I to eliminate Intra-entity Income accrual for the current year. 10 Prepare entry D to eliminate Intra-entity dividend transfers. Prepare entry E to recognize 2018 amortization 11 expense

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