Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that date,Abernethy has the following trial balance:ItemsAccounts 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 12/31/26)Retained earnings, 1/1/23SuppliesTotalsview transaction listConsolidationWorksheet Entries2During 2023, Abernethy reported net Income of $96,000 while declaring and paying dividends of $12,000.During 2024, Abernethy reported net Income of $141,000 while declaring and paying dividends of $45,000.Assume that Chapman Company acquired Abernethy's common stock for $651,300 In cash. As of January1, 2023, Abernethy's land had a fair value of $111,300, its buildings were valued at $199,400, and itsequipment was appraised at $233,500. Chapman uses the equity method for this Investment.Note: Enter debits before credits.DateRequired:Prepare consolidation worksheet entries for December 31, 2023, and December 31, 2024.Note: If no entry is required for a transaction/event, select "No Journal entry required" in the firstaccount field.3December 31, 2023Record entry45Debit$ 44,300137,00073,7506Clear entry262,500126,500100,500AccountsCredit$ 59,30050,00018,600$763,150 $763,150250,000Prepare entry A to recognize allocations attributed to specific accounts atacquisition date.176,000227,8507812DebitCreditview consolidation entries>

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 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 12/31/26) Retained earnings, 1/1/23 Supplies Totals Debit $ 44,300 137,000 73,750 262,588 126,500 100, 500 Credit $ 59,300 50,000 250,000 176,000 227,858 18,600 $763,150 $763,150

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 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 12/31/26) Retained earnings, 1/1/23 Supplies Totals Debit $ 44,300 137,000 73,750 262,588 126,500 100, 500 Credit $ 59,300 50,000 250,000 176,000 227,858 18,600 $763,150 $763,150

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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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…
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Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. 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 12/31/26) Retained earnings, 1/1/23 Supplies No 1 2 3 4 During 2023, Abernethy reported net income of $104,500 while declaring and paying dividends of $13,000. During 2024, Abernethy reported net income of $137,750 while declaring and paying dividends of $34,000. 5 Assume that Chapman Company acquired Abernethy's common stock by paying $921,650 in cash. All of Abernethy's accounts are estimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to account for its investment. 6 Required: Prepare the consolidation worksheet entries for December 31, 2023, and…
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