Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date. Abernethy has thefollowing trial balance:Accounts payableAccounts receivableAdditional paid-in capitalBuildings (net) (4-year remaining life)Cash and short-term investmentsCommon stockEquipment (net) (5-year remaining life)InventoryLandLong-term liabilities (mature 12/31/23)Retained earnings, 1/1/20Supplies1Totals234During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2021, Abernethyreported net income of $136,750 while declaring and paying dividends of $36,000.57Assume that Chapman Company acquired Abernethy's common stock for $605,600 in cash. As of January 1, 2020, Abernethy's landhad a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164,500. Chapman uses theequity method for this investment.No68Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)9101112DateDecember 31, 202i No journal entry requiredDecember 31, 2021 LandBuildingsGoodwillDecember 31, 2021 Common stock-AbernethyAdditional paid-in capitalRetained earnings-1/1/20Investment in AbernethyDecember 31, 2021 Investment in AbernethyDividends declaredDebit$ 44,700December 31, 2021 Depreciation expenseEquipmentBuildings163,00083,750EquipmentInvestment in AbernethyDecember 31, 202 Investment in Abernethy207.500122,00085,50013,300$719,758December 31, 2021 Equity in subsidiary earningsInvestment in AbernethyDecember 31, 202 LandBuildingsGoodwillRetained earnings-1/1/20AccountsDecember 31, 202 Common stock-AbernethyAdditional paid-in capitalRetained earnings-1/1/21December 31, 202 Investment in AbernethyDividends declaredDecember 31, 202 Depreciation expenseEquipmentEquipmentInvestment in AbernethyCredit$ 55,10050,000December 31, 202 Equity in subsidiary earningsInvestment in Abernethy250,000162,500292,150$ 719,750✔✔•✔✔•✔•✓3310 000Xx>>>00000✓✔33✔Debit250,000✔50,000✔202,15016,300✔64,40065,75097,50013,000✔7,500✔also I tried this answer $ 84500 but it is wrong too (103000 -(13000+7500))=845008,600294,150 x250,00050,000✔294,150✔16,300✔48,300✔65,750129,250✔36,000✔7,500✔8,600✔Credit502,15043,000✔103,45097,50013,000✔16,100✔294,150 x594,15034,400✔95,950✔129,25036,000✔I just need question number 7 which is: Prepare entry *C (asterisk C) to convertparent's beginning retained earnings to full accrual basis

Journal - A journal is a thorough account that documents all of a business's financial activities.…

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) Cash and short-term investments Common stock Fquipment (not) (5-year remaining life) Inventory Land Long-tere liabilities (nature 12/31/23) Retained earnings, 1/1/20 Supplies Totals Dobit $ 44,700 163,000 85,750 707,500 122,000 13,300 $719,758 Credit $ 55,100 50,000 250,000 162,500 292,150 719,748 During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13.000. During 2021, Abernethy reported net income of $136.750 while declaring and paying dividends of $36.000. Assume that Chapman Company acquired Abernethy's common stock for $605,600 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164.500. Chapman uses the equity method for this investment.

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) Cash and short-term investments Common stock Fquipment (not) (5-year remaining life) Inventory Land Long-tere liabilities (nature 12/31/23) Retained earnings, 1/1/20 Supplies Totals Dobit $ 44,700 163,000 85,750 707,500 122,000 13,300 $719,758 Credit $ 55,100 50,000 250,000 162,500 292,150 719,748 During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13.000. During 2021, Abernethy reported net income of $136.750 while declaring and paying dividends of $36.000. Assume that Chapman Company acquired Abernethy's common stock for $605,600 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164.500. Chapman uses the equity method for this investment.

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

Flynn Company purchased 70 Rinehart Company 6%, 10-year, $1,000 bonds on January 1, 2020, for $70,000. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Flynn Company sold 40 of the bonds for $38,500. Instructions: Prepare the journal entries to record the transactions described above. E16.4 (LO 2) Hulse Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Wade common stock (2%) for $7,200 cash. July 1 Received cash dividends of $1 per share on Wade common stock. Sept. 1 Sold 300 shares of Wade common stock for $4,300. Dec. 1 Received cash dividends of $1 per share on Wade common stock. Instructions: a. Journalize the transactions.
At the beginning of 2019, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value): Security Cost 1/1/19 Fair Value A $35,000 $44,000 B 53,000 50,000 Totals $88,000 $94,000 During 2019, the following transactions occurred: Transactions: May 3 Purchased C debt securities at their par value for $50,000. July 1 Sold all of the A securities for $44,000 plus interest of $1,000. Dec. 31 Received interest of $1,000 on the B and C securities. Additionally the following information was available: Security 12/31/19 Fair Value B $58,000 C 53,000 1.What is the balance in the Unrealized Holding Gain/Loss account on December 31, 2019? fill in the blank
GHJ, a listed entity, has 1,000,000 ordinary shares in issue throughout 2019. The profits after tax for the period total N$800,000. The entity has two convertible ﬁnancial instruments in issue: N$500,000 10% loan stock, each N$1,000 of stock having the right to convert into 2,000 ordinary shares. 400,000 convertible N$1 non-equity shares, paying a dividend of 10 cents per share. Each preference share is convertible to 2 ordinary shares. Requirement Calculate the basic and diluted earnings per share for GHJ assuming a tax rate of 30%. (b) ACD, another listed entity, has earnings per share in 2018 of 25 cents per share. ACD has 4,000,000 ordinary shares in issue throughout 2018. In 2019 1,500,000 ordinary shares were issued by way of a capitalisation (bonus) issue. The proﬁts after tax for the year were N$1,200,000. Requirement Calculate the EPS for 2019 and the restated eps for 2018 that will be included in the 2019 ﬁnancial statements
At the end of 2018, Terry Company prepared the following schedule of investments in available-for-sale debt securities (all of which were acquired at par value): Company Amortized Cost 12/31/18 Fair Value Cumulative Change in Fair Value Morgan Company $35,000 $34,200 $(800) Nance Company 50,000 53,100 3,100 Totals $85,000 $87,300 $2,300 During 2019, the following transactions occurred: July 1 Purchased Oscar Company debt securities with a par value of 100,000 for $98,000. The securities carry an annual interest rate of 10%, mature on December 31, 2021, and pay interest seminannually on July 1 and December 31. Terry uses the straight-line method to amortize any discounts or premiums. Oct. 11 Sold all of the Morgan Company securities for $33,000 plus interest of $1,300. Dec. 31 Received interest of $6,000 on the Nance Company and Oscar Company debt securities, and the following yearend total market values were available: Nance Company debt securities, $55,000; Oscar…
Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Credit Accounts payable $ 52,400 Accounts receivable $ 48,600 Additional paid-in capital 50,000 Buildings (net) (4-year remaining life) 179,000 Cash and short-term investments 61,250 Common stock 250,000 Equipment (net) (5-year remaining life) 260,000 Inventory 121,500 Land 105,000 Long-term liabilities (mature 12/31/23) 174,500 Retained earnings, 1/1/20 264,650 Supplies 16,200 Totals $ 791,550 $ 791,550 During 2020, Abernethy reported net income of $86,000 while declaring and paying dividends of $11,000. During 2021, Abernethy reported net income of $124,500 while declaring and paying dividends of $47,000. Assume that Chapman Company acquired Abernethy’s common stock by paying $752,650 in cash. All…
Please do not give solution in image format ?
On January 1, 2019, Spring Co. purchased a 25% interest in Fall Inc. for $500,000. For the year ended December 31, 2019, Fall reported net income from operations of $65,000 and a loss from discontinued operations of $10,000 (net of tax). Fall paid dividends of $11,500 on December 31, 2019. Assume that Spring uses the equity method to account for its investment in Fall. Which of the following is the amount that would be reported on Spring's 2019 income statement relating to Fall? Multiple Choice Investment income of $13,750. Dividend revenue of $2,875. Investment income of $16,250 and investment loss, discontinued operations of $2,500. Investment income of $13,750 and investment loss, discontinued operations of $2,500.
On July 1, Year 1, Hill Inc. bought and classified the following 10-year debt investments as trading securities. At December 31, Year 1, Hill prepares its financial statements for the end of the fiscal year. At December 31, Year 1, Hill determines the fair value of these securities: Security Cost Fair Value AX PH JB $100,000 40,000 82,000 $94,000 64,000 85,000 At what amount will Hill report these investments in its balance sheet at December 31, Year 1, and how will they be classified? Select one: a. $243,000; current assets Ob. $222,000; current assets о c. $222,000; long-term assets d. $140,000; current assets
PLease explain the calculate for buildings and equipment n handwritten
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that date, Abernethy has the following trial balance: Items Accounts payable Accounts receivable Debit Credit $ 53,700 $ 41,000 Additional paid-in capital Buildings (net) (4-year remaining life) 50,000 184,000 Cash and short-term investments 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) Retained earnings, 1/1/23 Supplies Totals 107,500 173,000 417,450 16,900 $ 944,150 $ 944,150 During 2023, Abernethy reported net income of $98,000 while declaring and paying dividends of $12,000. During 2024, Abern reported 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 accounts estimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method…
Prepare consoldiation worksheet entries for December 31, 2020 and December 31, 2021.
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance: Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Common stock Equipment (net) (5-year remaining life) Inventory Land Long-term liabilities (mature 12/31/20) Retained earnings, 1/1/17 Supplies Totals view transaction list No 1 Date December 31 2017 Debit $ 44,300 137,000 73,750 transaction list 262,500 126,500 100,500 During 2017, Abernethy reported net income of $96,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $141,000 while declaring and paying dividends of $45,000. Accounts 18,600 $763,150 Assume that Chapman Company acquired Abernethy's common stock for $651,300 in cash. As of January 1, 2017, Abernethy's land had a fair value of $111,300, its buildings were valued at $199,400, and its equipment was…