1. prepare entry *C to convert parents beginning retained earnings to full accural 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 acquistion date with residual fair value recgonized as goodwill
4. prepare entry I to eliminate the income accural for 2020 less the amortization recorded by the parents using the equity method
5. prepare entry D to eliminate intra-enityt dividend transfers
6. prepare entry E to recognize current year amortization expense
7. prepare entry C to convert parents beginning retained earnings to full accrual basis
8. prepare entry S to eliminate stockholders equity accounts of subsidiary for 2021
9. prepare entry A to recognize allocations attributed to specific accounts at acquistion date for 2021
10. prepare entry I to eliminate the income accural for 2021 less the amortization recorded by the parent using the equity method
11. prepare entry D to eliminate intra-entity dividend transfers
12. 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 $120,500 while declaring and paying dividends of $15,000. During 2021 , Abernethy reported net income of $172,000 while declaring and paying dividends of $40,000. Assume that Chapman Company acquired Abernethy's common stock for $714,650 in cash. As of January 1, 2020, Abernethy's land had a fair value of $139,200, its buildings were valued at $262,000, and its equipment was appraised at $218,000. 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.)