Chapman Company obtains 100 percent of Abernethy Company's stock on January 1,2020 . As of...
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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 $97,000 while declaring and paying dividends of $12,000. During 2021, 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, 2020, 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, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 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 4567812> Prepare entry C to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits
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