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Prepare Consolidation worksheet entries for December 31, 2014 and December 31, 2015 (10 entries total starting from December 31, 2014 to December 31, 2015) Chapman
Prepare Consolidation worksheet entries for December 31, 2014 and December 31, 2015 (10 entries total starting from December 31, 2014 to December 31, 2015)
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2014. As of that date, Abernethy has the following trial balance: Credit $52,800 Debit Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year life) Cash and short-term investments Common stock Equipment (net) (5-year life) Inventory Land Long-term liabilities (mature 12131/17) Retained earnings, 1/1/14 Supplies $ 49,500 50,000 174,000 84,000 250,000 315,000 137,500 90,500 188,500 323,600 14,400 Totals $864,900 $864,900 During 2014, Abernethy reported net income of $129,000 while declaring and paying dividends of $16,000. During 2015, Abernethy reported net income of $176,000 while declaring and paying dividends of $38,000. Assume that Chapman Company acquired Abernethy's common stock for $733,100 in cash. As of January 1, 2014, Abernethy's land had a fair value of $101,000, its buildings were valued at $242,000, and its equipment was appraised at S279,500. Chapman uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2014, and December 31, 2015. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Step by Step Solution
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