Prepare entry *C to convert parents beginning retained earnings to full accrual basis

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As 3 of that date, Abernethy has the following trial balance: Debit Credit Accounts payable $ 54, 200 Accounts receivable $ 42, 900 Additional paid-in capital 50 , 000 Buildings (net) (4-year remaining life) . 192 , 000 8 01:16:57 Cash and short-term investments 73 , 500 Common stock 250, 000 Equipment (net) (5-year remaining life) 245 , 000 Inventory 99 , 000 Land 128, 500 Long-term liabilities (mature 12/31/23) 160, 000 Retained earnings, 1/1/20 279, 200 Supplies 12, 500 Totals $793 , 400 $ 793 , 400 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.) Mc