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 5 During 2023, Abernethy reported net income of $126,000 while declaring and paying dividends of $16,000. During 2024, Abernethy reported net income of $174,000 while declaring and paying dividends of $49,000. 6 Assume that Chapman Company acquired Abernethy's common stock by paying $785,800 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. 7 Items 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. 8 Totals 9 10 11 Date December 31, 2023 Common stock-Abernethy Investment in Abernethy Additional paid-in capital-Abernethy Retained earnings December 31, 2023 Goodwill Investment in Abernethy December 31, 2023 Investment in Abernethy Dividends declared December 31, 2023 Equity in subsidiary earnings Investment in Abernethy December 31, 2023 No journal entry required December 31, 2024 No journal entry required December 31, 2024 Common stock-Abernethy December 31, 2024 Goodwill Additional paid-in capital-Abernethy Retained earnings Investment in Abernethy Investment in Abernethy Debit Accounts December 31, 2024 Investment in Abernethy Dividends declared $ 48,500 130,000 66,000 December 31, 2024 Equity in subsidiary earnings Investment in Abernethy December 31, 2024 No journal entry required 437,500 109,000 89,000 11,400 $ 891,400 Answer is not complete. Credit $ 54,100 50,000 250,000 178,500 358,800 $ 891,400 ✓ ✓ ✓ ✓ ✓ ✓ ✔ ✓ ✓ ✓ 3 ✓ ›› › › ✓ ✓ ✓ 33 ›› ›› 3 Debit 250,000 50,000 358,800 14,000 X 126,000✔ > 16,000✔ 250,000✔ ›› 174,000 50,000✔ Credit 658,800✔ 126,000✔ 16,000✔ 174,000 X