Include journal entries for the first year (2017)
Questions 19-21 Problem 19 through 21 should be viewed as independent situation. They are based on the following data: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abemetley has the following trial balance Debit Credit Accounts payable S 50.000 Accounts receivable $ 40,000 Additional pride capital S0,000 Buildings (et) (4-year remaining life) 120.000 Cash and short-term investments 60,000 Common stock 250.000 Equipment (et) (5-year remaining life) 200.000 Lovestory 90.000 Land 50.000 Long term tibilities mature 12/31/20) 150.000 Retained earnings, 1/1/17 100,000 Supplies 10.000 Total S600.000 5600.000 During 2017. Abernetty oported net income of 590.000 while declaring and paying dividends of $10.000 During 2013. Abernethy reported net income of 110.000 whule declaring and paying dividends of 30,000 LO-a 19. Acume that Chapman Company required Abernethy commun och for $490.000 in cash. As of Sumary 1, 2017. Abernelly's land had a fair value of $90.000, its buildings were valued at $160.000, and its equipament was appraised at $180.000. Chapmat uses the equity method for this investment. Prepare consolidation workshet entries for December 31, 2017. ond December 31, 2018 LO 3-30 20. Asume that Chapman Company acquired Abernethy's common stock for $500.000 in cash. Assume that the equipment and long-term liabilities had fair values of $220.000 and $120.000. etpectively on the acquisition doc. Clupean use the initial value method to account for its investment. Prepare comiolidation worksheet entries for December 31. 2017 and December 31, 2018 10 3-369 21. Assume that Chapman Company acquired Abernedry's common stock by paying $520.000 in cash. All of Alemetly's accounts are estimated to have a fair value approximately equal to present book values. Chapmat uses the partial equity method to account for its investment, Prepare the consolidation worksheet entries for December 31.2017, and December 31, 2018 Questions 19-21 Problem 19 through 21 should be viewed as independent situation. They are based on the following data: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abemetley has the following trial balance Debit Credit Accounts payable S 50.000 Accounts receivable $ 40,000 Additional pride capital S0,000 Buildings (et) (4-year remaining life) 120.000 Cash and short-term investments 60,000 Common stock 250.000 Equipment (et) (5-year remaining life) 200.000 Lovestory 90.000 Land 50.000 Long term tibilities mature 12/31/20) 150.000 Retained earnings, 1/1/17 100,000 Supplies 10.000 Total S600.000 5600.000 During 2017. Abernetty oported net income of 590.000 while declaring and paying dividends of $10.000 During 2013. Abernethy reported net income of 110.000 whule declaring and paying dividends of 30,000 LO-a 19. Acume that Chapman Company required Abernethy commun och for $490.000 in cash. As of Sumary 1, 2017. Abernelly's land had a fair value of $90.000, its buildings were valued at $160.000, and its equipament was appraised at $180.000. Chapmat uses the equity method for this investment. Prepare consolidation workshet entries for December 31, 2017. ond December 31, 2018 LO 3-30 20. Asume that Chapman Company acquired Abernethy's common stock for $500.000 in cash. Assume that the equipment and long-term liabilities had fair values of $220.000 and $120.000. etpectively on the acquisition doc. Clupean use the initial value method to account for its investment. Prepare comiolidation worksheet entries for December 31. 2017 and December 31, 2018 10 3-369 21. Assume that Chapman Company acquired Abernedry's common stock by paying $520.000 in cash. All of Alemetly's accounts are estimated to have a fair value approximately equal to present book values. Chapmat uses the partial equity method to account for its investment, Prepare the consolidation worksheet entries for December 31.2017, and December 31, 2018
