Please do not give solution in image format ? and explain proper steps by Step ? 21. Assume that Chapman Company acquired Abernethy's common stock by paying $520,000 in cash.All of Abernethy's accounts are estimated to have a fair value approximately equal to present bookvalues. Chapman uses the partial equity method to account for its investment. Prepare the consolida-tion worksheet entries for December 31, 2023, and December 31, 2024. following data:Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As ofthat date, Abernethy has the following trial balance:Accounts payable...Accounts receivable.Additional paid-in capital.Buildings (net) (4-year remaining life)Cash and short-term investmentsCommon stockEquipment (net) (5-year remaining life)Inventory.Land...Long-term liabilities (mature 12/31/26)..Retained earnings, 1/1/23...SuppliesTotals...Debit$ 40,000120,00060,000200,00090,00080,00010,000$600,000Credit$ 50,00050,000250,000150,000100,000$600,000During 2023, Abernethy reported net income of $80,000 while declaring and paying dividendsof $10,000. During 2024, Abernethy reported net income of $110,000 while declaring and payingdividends of $30,000.

Consolidated entries in accounting involve combining the financial result of a parent company and…

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.