entry 11

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1 2020. As of the date, Abernethy has the following trial balance Debit Credit $ 55,00 $ 42,500 5e,eee 209,000 67,250 250, Accounts payable Accounts receivable Additional paid in capital Buildings (net) (4-year remaining life) Cash and short-term investments Coron stock Equipment (net) (5-year renaining life) Inventory Land Long-term liabilities (nature 12/11/21) Retained earnings, 1/1/20 Supplies Totals 352,500 136,000 114,000 163, 414,650 12.10 $938,950 933.950 During 2020. Abernethy reported net income of $104,500 while declaring and paying dividends of $13.000. During 2021 Abernethy reported net income of $137750 while declaring and paying dividends of $34.000 Assume that Chapman Company acquired Abernethy's common stock by paying $921,650 in cash Al of Abemethy'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, 2020, and December 31, 2021. (If no entry is required for a transaction event, select "No journal entry required" in the first account field.) Vibracist Consolidation Maricheat Entriec 111 Next > 1 th 5 6 7 8 O 9 10 11 Prepare entry E to recognize 2021 amortization expense. Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2021 Record entry Clear entry view consolidation entries