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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
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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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.
Transcribed Image Text: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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