{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-09T15:29:51-04:00", "answer_date": "2024-06-09 15:29:51", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2522269", "url": "\/study-help\/questions\/transcribed-image-text-chapman-company-obtains-100-percent-of-abernethy-2522269", "question_creation_date_js": "2024-06-09T15:29:51-04:00", "question_creation_date": "Jun 09, 2024 03:29 PM", "meta_title": "[Solved] Chapman Company obtains 100 percent of Ab | SolutionInn", "meta_description": "Answer of - Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has th | SolutionInn", "meta_keywords": "chapman,company,obtains,100,percent,abernethy,s,stock,january,1,2020,date", "question_title_h1": "Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Depit Credit", "question_title": "Chapman Company obtains 100 percent of Abernethy Company's stock on January 1,", "question_title_for_js_snippet": "Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020 As of that date, Abernethy has the following trial balance Depit Credit Accounts payable $ 55,300 Accounts receivable $ 45,800 Additional paid in capital 50,000 Buildings (net) (4 year remaining life) 197,000 Cash and short term investments 81,500 Common stock 250,000 Equipment (net) (5 year cenaining lite) 345,000 Inventory 124,500 Land 125,000 Long term liabilities nature 12 31 23) 176,500 Retained earnings, 1 1 20 402,900 Supplies 15 900 Totals $934,700 $ 934,700 During 2020, Abernethy reported net income of $124,500 while declaring and paying dividends of $16,000 During 2021, Abernethy reported net income of $167 750 while declaring and paying dividends of $41,000 Assume that Chapman Company acquired Abernethy's common stock for $819,850 in cash As of January 1, 2020, Abernethy's land had a fair value of $141 900, its buildings were valued at $251,800, and its equipment was appraised at $306,750 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 ) Consolidation Worksheet Entries 12 2 3 4 5 6 7 8 Prepare entry C to convert parent's beginning retained earnings to full accrual basis Note Enter debits before credits Debit Credit Accounts Date December 31, 2020 Record entry Clear entry view consolidation entries 5 6 12 3 4 7 8 5 12 Prepare entry E to recognize current year amortization expense Note Enter debits before credits Accounts Debit Credit Date December 31, 2020 Record entry Clear entry view consolidation entries 7 8 12 4 5 6 Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021 Note Enter debits before credits Accounts Debit Credit Date December 31, 2021 IU 1 5 Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method Note Enter debits before credits Accounts Debit Credit Date December 31, 2021 Record entry Clear entry view consolidation entries Worksheet 10 11 12 ", "question_description": "\"image\"image\"image\"image\"image\"image\"image\"image\"image\"image\"image\"image\"image
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\"image<\/div> <\/div> Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Depit Credit Accounts payable $ 55,300 Accounts receivable $ 45,800 Additional paid-in capital 50,000 Buildings (net) (4-year remaining life) 197,000 Cash and short-term investments 81,500 Common stock 250,000 Equipment (net) (5-year cenaining lite) 345,000 Inventory 124,500 Land 125,000 Long-term liabilities nature 12\/31\/23) 176,500 Retained earnings, 1\/1\/20 402,900 Supplies 15.900 Totals $934,700 $ 934,700 During 2020, Abernethy reported net income of $124,500 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $167.750 while declaring and paying dividends of $41,000 Assume that Chapman Company acquired Abernethy's common stock for $819,850 in cash. As of January 1, 2020, Abernethy's land had a fair value of $141.900, its buildings were valued at $251,800, and its equipment was appraised at $306,750. 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.) Consolidation Worksheet Entries 12 > ..... 2 3 4 5 6 7 8 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits. Debit Credit Accounts Date December 31, 2020 Record entry Clear entry view consolidation entries 5 6 12 3 4 7 8 ..... 5 12 Prepare entry E to recognize current year amortization expense. Note: Enter debits before credits Accounts Debit Credit Date December 31, 2020 Record entry Clear entry view consolidation entries > 7 8 12 ..... 4 5 6 ... ..... Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Note: Enter debits before credits. Accounts Debit Credit Date December 31, 2021 IU 1 ... 5 Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Note: Enter debits before credits. Accounts Debit Credit Date December 31, 2021 Record entry Clear entry view consolidation entries Worksheet 10 11 12 >", "transcribed_text": "", "related_book": { "title": "Advanced Accounting", "isbn": "1259444953, 978-1259444951", "edition": "13th edition", "authors": "Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1199.jpg", "uri": "\/textbooks\/advanced-accounting-13th-edition-1199", "see_more_uri": "\/textbooks\/business-economics-public-economics-3443" }, "free_related_book": { "isbn": "9387949036", "uri": "\/textbooks\/rank-up-physics-jee-main-and-advanced-electricity-and-magnetism-1st-edition-9789387949034-111409", "name": "Rank Up Physics JEE Main And Advanced Electricity And Magnetism", "edition": "1st Edition" }, "question_posted": "2024-06-09 15:29:51", "see_more_questions_link": "\/study-help\/questions\/business-human-resource-management-2020-May-22", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/franklin-paper-company-manufactures-newsprint-the-product-is-manufactured-in", "description": "Franklin Paper Company manufactures newsprint. 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