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Please help woth journal entries n Prepare entry C to convert parent's beginning retained earnings to full accrual basis. Prepare entry S to eliminate stockholders'
Please help woth journal entries
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Prepare entry C to convert parent's beginning retained earnings to full accrual basis. Prepare entry S to eliminate stockholders' equity accounts of subsidiary. Prepare entry A to recognize allocations attributed to fair value of specific accounts at acquisition date with residual fair value recognized as goodwill. Prepare entry I to eliminate the income accrual for 2020 less the amortization recorded by the parent using the equity method. Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Prepare entry D to eliminate intra-entity dividend transfers. Prepare entry E to recognize current year amortization expense. 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 $99,000 while declaring and paying dividends of $12,000. During 2021, Abernethy reported net income of $151,250 while declanng and paying dividends of $53,000 Assume that Chapman Company acquired Abernethy's common stock for $866.800 in cash. As of January 1, 2020, Abemethy's land had a fair value of $110,900, its buildings were valued at $232,400, and its equipment was appraised at $418,250. 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 occount field.) Prepare entry D to eliminate intra-entity dividend transfers. Prepare entry E to recognize current year amortization expense. 7 Prepare entry C to convert parent's beginning retained earnings to full accrual basis. Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021 Step by Step Solution
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