Prepare entry S to eliminate beginning stockholders' equity of subsidiary—the Retained Earnings account has been adjusted for 2017 income and dividends. Entry *C is not needed because equity method was applied.

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance: Debit Credit Accounts payable $ 50,300 Accounts receivable $ 47,500 Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments 50,000 201,000 61,750 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory Land 447,500 127,500 124,000 Long-term liabilities (mature 12/31/20) Retained earnings, 1/1/17 Supplies 162,000 514,850 17,900 Totals $1,027,150 $1,027,150 During 2017, Abernethy reported net income of $97,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $141,250 while declaring and paying dividends of $48,000. Assume that Chapman Company acquired Abernethy's common stock for $933,200 in cash. As of January 1, 2017, Abernethy's land had a fair value of $137,700, its buildings were valued at $255,400, and its equipment was appraised at $420,750. Chapman uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)