<\/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 >",
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