www.percent of Avereny Company's stock on January 1, 2023. As of that date, Abernethy has thefollowing trial balance:ItemsAccounts payableAccounts receivableAdditional paid-in capitalBuildings (net) (4-year remaining life).Cash and short-term investmentsCommon stockEquipment (net) (5-year remaining life)InventoryLandTotalsLong-term liabilities (mature 12/31/26)Retained earnings, 1/1/23SuppliesDebit$ 44,700163,00083,750207,500122,00085,500Credit$ 55,10050,000250,000162,500202,15013,300$ 719,750 $ 719,750During 2023, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2024, Abernethyreported net income of $136,750 while declaring and paying dividends of $36,000.Assume that Chapman Company acquired Abernethy's common stock by paying $630,150 in cash. All of Abernethy's accounts areestimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to account for itsinvestment.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.

Eliminating Entries:While consolidating income statements and balance sheet, some entries accounts…

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 fold

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 fold

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

www.percent of Avereny 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
Totals
Long-term liabilities (mature 12/31/26)
Retained earnings, 1/1/23
Supplies
Debit
$ 44,700
163,000
83,750
207,500
122,000
85,500
Credit
$ 55,100
50,000
250,000
162,500
202,150
13,300
$ 719,750 $ 719,750
During 2023, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2024, Abernethy
reported net income of $136,750 while declaring and paying dividends of $36,000.
Assume that Chapman Company acquired Abernethy's common stock by paying $630,150 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.
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.

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