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in cash. Assume that Chapman Company acquired Abernethy's common stock by paying: All of Abernethy's accounts are estimated to have a fair value approximately equal to present book walues. Chapman uses the partial equity method to account for its investment. Prepare the consolida- ion worksheet entries for December 31, 2023, and December 31, 2024.

in cash. Assume that Chapman Company acquired Abernethy's common stock by paying: All of Abernethy's accounts are estimated to have a fair value approximately equal to present book walues. Chapman uses the partial equity method to account for its investment. Prepare the consolida- ion worksheet entries for December 31, 2023, and December 31, 2024.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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21. Assume that Chapman Company acquired Abernethy's common stock by paying $520,000 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. Prepare the consolida- tion worksheet entries for December 31, 2023, and December 31, 2024.
Transcribed Image Text:21. Assume that Chapman Company acquired Abernethy's common stock by paying $520,000 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. Prepare the consolida- tion worksheet entries for December 31, 2023, and December 31, 2024.
following data: 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 Totals... Debit $ 40,000 120,000 60,000 200,000 90,000 80,000 10,000 $600,000 Credit $ 50,000 50,000 250,000 150,000 100,000 $600,000 During 2023, Abernethy reported net income of $80,000 while declaring and paying dividends of $10,000. During 2024, Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000.
Transcribed Image Text:following data: 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 Totals... Debit $ 40,000 120,000 60,000 200,000 90,000 80,000 10,000 $600,000 Credit $ 50,000 50,000 250,000 150,000 100,000 $600,000 During 2023, Abernethy reported net income of $80,000 while declaring and paying dividends of $10,000. During 2024, Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000.
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