Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. 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 12/31/26)Retained earnings, 1/1/23SuppliesTotalsItemsview transaction listConsolidationWorksheet Entries123Debit4$ 44,300137,00073,750During 2023, Abernethy reported net income of $96,000 while declaring and paying dividends of $12,000. During 2024, Abernethyreported net income of $141,000 while declaring and paying dividends of $45,000.5262,500126,500100,500Assume that Chapman Company acquired Abernethy's common stock for $635,560 in cash. Assume that the equipment and long-term liabilities had fair values of $287,450 and $144,440, respectively, on the acquisition date. Chapman uses the initial value methodto account for its investment.6-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.18,600$763,150Credit$ 59,30050,000250,000176,000227,850$763,1507 8 9Prepare entry S to eliminate stockholders' equity accounts of subsidiary.>

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 Items 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 73,750 262,500 126,500 100,500 18,600 $763,150 Credit $ 59,300 50,000 250,000 176,000 227,850 $763,150 During 2023 Abernethy reported net income of $96.000 while declaring and paying dividends of $12.000 During 2024 Abernethy

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 Items 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 73,750 262,500 126,500 100,500 18,600 $763,150 Credit $ 59,300 50,000 250,000 176,000 227,850 $763,150 During 2023 Abernethy reported net income of $96.000 while declaring and paying dividends of $12.000 During 2024 Abernethy

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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company's accounting year ends December 31. Date of Acquisition Cost 9/20/23 $38,000 10/2/23 14,000 Investment Colt Company stock Dana Company stock What amount is reported for gain or loss on these securities in 2023 income? Select one: O a. $800 loss O Fair Value 12/31/23 Date Sold Selling Price $37,000 2/10/24 $42,000 14,200 1/17/24 13,000 b. $1,000 loss c. No gain or loss d. $3,000 gain ہے
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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