Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that date, Abernethy has thefollowing trial balance:ItemsAccounts payableAccounts receivableDebitCredit$ 53,700$ 41,000Additional paid-in capitalBuildings (net) (4-year remaining life)50,000184,000Cash and short-term investments77,250Common stock250,000Equipment (net) (5-year remaining life)Inventory400,000117,500LandLong-term liabilities (mature 12/31/26)Retained earnings, 1/1/23SuppliesTotals107,500173,000417,45016,900$ 944,150 $ 944,150During 2023, Abernethy reported net income of $98,000 while declaring and paying dividends of $12,000. During 2024, Abernreported net income of $128,250 while declaring and paying dividends of $39,000.Assume that Chapman Company acquired Abernethy's common stock by paying $890,450 in cash. All of Abernethy's accountsestimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to accountInvestment.Required:Prepare the 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.NoDate1December 31, 2023 Common stock-AbernethyAdditional paid-in capital-Abernethy2Retained earningsInvestment in AbernethyAnswer is not complete.AccountsDebitCredit× × × ×3000250,00050,000417,450717,45070,40068,25021,500December 31, 2023 Equity in subsidiary earningsBuildingsGoodwillEquipment

Consolidation:Consolidation means combining the financial items of subsidiary company with the…

Accounts payable Accounts receivable Items Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Debit $ 41,000 Credit $ 53,700 50,000 184,000 77,250 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory 400,000 117,500 Land Long-term Liabilities (mature 12/31/26) 107,500 Retained earnings, 1/1/23 173,000 417,450 Supplies Totals 16,900 $ 944,150 $ 944,150

Accounts payable Accounts receivable Items Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Debit $ 41,000 Credit $ 53,700 50,000 184,000 77,250 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory 400,000 117,500 Land Long-term Liabilities (mature 12/31/26) 107,500 Retained earnings, 1/1/23 173,000 417,450 Supplies Totals 16,900 $ 944,150 $ 944,150

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Attempt in Progress Oriole Corporation reported the following information (in thousands) at December 31, 2024 : Dividends payable Bank loan payable - current portion Bank loan payable - non-current portion Common shares Retained earnings 2024 $15 280 420 640 700 2023 $5 280 300 440 530 Additional information: 1. 2. 3. The bank loan was increased by additional borrowings of $330 to partially finance the purchase of new equipment that cost $700. The bank loan was decreased by repayments. Common shares were issued during the year. None were repurchased. The company paid dividends during the year. Net income for the year was $420. B SUPPORT Prepare the financing activities section of Oriole's statement of cash flows for the year.
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How to close off this capital account with a net loss of -$71850.00, while using the income summary account