es Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of...

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es 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 Accounts receivable Accounts payable Additional paid-in capital Buildings (net) (4-year remaining life) Credit $ 54,100 $ 48,500 50,000 130,000 Cash and short-term investments 66,000 Common stock 250,000 Equipment (net) (5-year remaining life) 437,500 Inventory 109,000 Land 89,000 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/201 178,500 358,800 Supplies 11,400 Totals $891,400 $891,400 During 2020, Abernethy reported net income of $126,000 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $174,000 while declaring and paying dividends of $49,000. Assume that Chapman Company acquired Abernethy's common stock for $773,550 in cash. As of January 1, 2020, Abernethy's land had a fair value of $104,200, its buildings were valued at $208,800, and its equipment was appraised at $396,500. 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.) view transaction list Consolidation Worksheet Entries equity method for this investment. Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is re transaction/event, select "No journal entry required" in the first account field.) S view transaction list 1 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 2 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 3 Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with resual fair value recognized as goodwill. 4 Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method. 5 Prepare entry D to eliminate intra-entity dividend transfers. Note: journal entry has been entered ll 12 i Credit Record entry Clear entry view consolidation entries equity method for this Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (I transaction/event, select "No journal entry required" in the first account field.) view transaction list 6 Prepare entry E to recognize current year amortization expense. 7 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 12 8 Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 21. 9 Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Credit 10 Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Note: journal entry has been entered Record entry Clear entry view consolidation entries es 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 Accounts receivable Accounts payable Additional paid-in capital Buildings (net) (4-year remaining life) Credit $ 54,100 $ 48,500 50,000 130,000 Cash and short-term investments 66,000 Common stock 250,000 Equipment (net) (5-year remaining life) 437,500 Inventory 109,000 Land 89,000 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/201 178,500 358,800 Supplies 11,400 Totals $891,400 $891,400 During 2020, Abernethy reported net income of $126,000 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $174,000 while declaring and paying dividends of $49,000. Assume that Chapman Company acquired Abernethy's common stock for $773,550 in cash. As of January 1, 2020, Abernethy's land had a fair value of $104,200, its buildings were valued at $208,800, and its equipment was appraised at $396,500. 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.) view transaction list Consolidation Worksheet Entries equity method for this investment. Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is re transaction/event, select "No journal entry required" in the first account field.) S view transaction list 1 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 2 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 3 Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with resual fair value recognized as goodwill. 4 Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method. 5 Prepare entry D to eliminate intra-entity dividend transfers. Note: journal entry has been entered ll 12 i Credit Record entry Clear entry view consolidation entries equity method for this Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (I transaction/event, select "No journal entry required" in the first account field.) view transaction list 6 Prepare entry E to recognize current year amortization expense. 7 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 12 8 Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 21. 9 Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Credit 10 Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Note: journal entry has been entered Record entry Clear entry view consolidation entries