Accounts payable Accounts receivable Items Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Debit $ 42,900 Check my work Credit $ 54,200 50,000 192,000 73,500 Common stock 250,000 Equipment (net) (5-year remaining life) 245,000 Inventory 99,000 Land 128,500 Long-term liabilities (mature 12/31/26) Retained earnings, 1/1/23 160,000 279,200 Supplies 12,500 Totals $ 793,400 $ 793,400 During 2023, Abernethy reported net income of $120,500 while declaring and paying dividends of $15,000. During 2024, 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, 2023, 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. Required: Prepare consolidation worksheet entries for December 31, 2023, and December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries 1 2 3 4 5 9 7 00 8 12 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits. Date December 31, 2023 Accounts Debit Credit
Accounts payable Accounts receivable Items Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Debit $ 42,900 Check my work Credit $ 54,200 50,000 192,000 73,500 Common stock 250,000 Equipment (net) (5-year remaining life) 245,000 Inventory 99,000 Land 128,500 Long-term liabilities (mature 12/31/26) Retained earnings, 1/1/23 160,000 279,200 Supplies 12,500 Totals $ 793,400 $ 793,400 During 2023, Abernethy reported net income of $120,500 while declaring and paying dividends of $15,000. During 2024, 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, 2023, 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. Required: Prepare consolidation worksheet entries for December 31, 2023, and December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries 1 2 3 4 5 9 7 00 8 12 Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits. Date December 31, 2023 Accounts Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Dineshbhai
Transcribed Image Text:Accounts payable
Accounts receivable
Items
Additional paid-in capital
Buildings (net) (4-year remaining life)
Cash and short-term investments
Debit
$ 42,900
Check my work
Credit
$ 54,200
50,000
192,000
73,500
Common stock
250,000
Equipment (net) (5-year remaining life)
245,000
Inventory
99,000
Land
128,500
Long-term liabilities (mature 12/31/26)
Retained earnings, 1/1/23
160,000
279,200
Supplies
12,500
Totals
$ 793,400
$ 793,400
During 2023, Abernethy reported net income of $120,500 while declaring and paying
dividends of $15,000. During 2024, 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, 2023, 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.
Required:
Prepare consolidation worksheet entries for December 31, 2023, and December 31,
2024.
Note: If no entry is required for a transaction/event, select "No journal entry required"
in the first account field.
view transaction list
Consolidation
Worksheet Entries
1
2
3
4
5
9
7
00
8
12
Prepare entry *C to convert parent's beginning retained earnings to full
accrual basis.
Note: Enter debits before credits.
Date
December 31, 2023
Accounts
Debit
Credit
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