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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 field.

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.

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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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 During 2023, Abernethy reported net income of $104,500 while declaring and paying dividends of $13,000. During 2024, Abernethy reported net income of $137,750 while declaring and paying dividends of $34,000. 5 Assume that Chapman Company acquired Abernethy's common stock by paying $921,650 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. 6 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. 7 Items Totals 8 9 10 Date December 31, 2023 Common stock-Abernethy December 31, 2023 No Transaction Recorded Additional paid-in capital-Abernethy Retained earnings Investment in Abernethy December 31, 2023 No Transaction Recorded December 31, 2023 No Transaction Recorded December 31, 2023 No Transaction Recorded December 31, 2024 No Transaction Recorded December 31, 2024 No Transaction Recorded December 31, 2024 No Transaction Recorded Debit $ 42,500 209,000 67,250 December 31, 2024 No Transaction Recorded 357,500 136,000 114,000 December 31, 2024 No Transaction Recorded Credit $ 55,800 50,000 250,000 Accounts 168,500 414,650 12,700 $938,950 $ 938,950 Answer is not complete. ›› ›› Debit 250,000✔ 50,000 414,650 Credit 714,650
Transcribed Image Text: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 During 2023, Abernethy reported net income of $104,500 while declaring and paying dividends of $13,000. During 2024, Abernethy reported net income of $137,750 while declaring and paying dividends of $34,000. 5 Assume that Chapman Company acquired Abernethy's common stock by paying $921,650 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. 6 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. 7 Items Totals 8 9 10 Date December 31, 2023 Common stock-Abernethy December 31, 2023 No Transaction Recorded Additional paid-in capital-Abernethy Retained earnings Investment in Abernethy December 31, 2023 No Transaction Recorded December 31, 2023 No Transaction Recorded December 31, 2023 No Transaction Recorded December 31, 2024 No Transaction Recorded December 31, 2024 No Transaction Recorded December 31, 2024 No Transaction Recorded Debit $ 42,500 209,000 67,250 December 31, 2024 No Transaction Recorded 357,500 136,000 114,000 December 31, 2024 No Transaction Recorded Credit $ 55,800 50,000 250,000 Accounts 168,500 414,650 12,700 $938,950 $ 938,950 Answer is not complete. ›› ›› Debit 250,000✔ 50,000 414,650 Credit 714,650
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