Chapman Company obtains 100 percent of Abernethy Company's stock on January 1,2012 As of that date, Abernethy has the following trial balance:

During 2012, Abernethy reported income of $80,000 while paying dividends of $10,000. During 2013, Abernethy reported income of $110,000 white paying dividends of $30,000. Assume that Chapman Company acquired Abernethy common stock for $490,000 in cash. As of January 1,2012, Abernethy land had a fair value of $90,000, its buildings were valued at $160,000, and its equipment was appraised at $180,000. Chapman uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2012, and December 31,2013.

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Debit Credit Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year life) Cash and short-term S50,000 $40,000 50,000 120,000 60,000 Common stock Equipment (net) (5-year life) 200,000 Inventory Land Long-term liabilities (mature 12/31/15) Retained earnings, 1/1/12 Supplies Totals 250,000 90,000 80,000 150,000 100,000 10,000 600,000 600,000