Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I really need help with these last 4 entries please. It's for the second year. Chapman Company obtains 100 percent of Abernethy Company's stock on
I really need help with these last 4 entries please. It's for the second year.
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1,2020 . As of that date, Abernethy has the following trial balance: During 2020 , Abernethy reported net Income of $80,000 while declaring and paying dividends of $10,000. During 2021, Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000. Assume that Chapman Company acquired Abernethy's common stock for $500,000 in cash. Assume that the equipment and Iongterm Ilabilities had fair values of $220,000 and $120,000, respectively, on the acquisition date. Chapman uses the Initial value method to account for its 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 fleld.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started