only typed soluyion Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has thefollowing trial balance:DebitAccounts receivableAccounts payableAdditional paid-in capitalBuildings (net) (4-year remaining life)Credit$ 50,000$ 40,00050,000120,000Cash and short-term investments60,000Common stock250,000Equipment (net) (5-year remaining life)200,000Inventory90,000Land80,000Long-term liabilities (mature 12/31/23)150,000Retained earnings, 1/1/20100,000SuppliesTotals10,000$600,000$ 600,000During 2020, Abernethy reported net income of $80,000 while declaring and paying dividends of $10,000. During 2021, Abernethyreported net income of $110,000 while declaring and paying dividends of $30,000.Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January 1, 2020, Abernethy's landhad a fair value of $90,000, its buildings were valued at $160,000, and its equipment was appraised at $180,000. Chapman uses theequity method for this investment.Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)

Consolidation is an activity in which financial statements of a parent and its subsidiary are…

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Common stock Debit Credit $ 50,000 $ 40,000 50,000 120,000 Cash and short-term investments 60,000 250,000 Equipment (net) (5-year remaining life) 200,000 Inventory 90,000 Land 80,000 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 150,000 100,000 Supplies Totals 10,000 $600,000 $ 600,000

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Common stock Debit Credit $ 50,000 $ 40,000 50,000 120,000 Cash and short-term investments 60,000 250,000 Equipment (net) (5-year remaining life) 200,000 Inventory 90,000 Land 80,000 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 150,000 100,000 Supplies Totals 10,000 $600,000 $ 600,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

subject:accunting information system. Q: explainDocument flowcharts and give two examples.
What is a data dictionary?
Distinguish between object classes and instances.
What is MIRR - Modified Internal Rtae of Return? Please provide example.
Landscape is O a. Page Layout O b. A Font Style c. Page Orientation O d. Paper Size
What records classified and summarized transactional data? Multiple Choice O O O O proof-of-work ledger hash distributed computing
What is Contiguous data?
Define transaction
What goes in what, like what do I put on Collum a,b,c, etc I'm confused where to put the data
Give an application for a replicated database.
How do you access the Power Query interface?
Define call option