$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline No & date & & & Debit & Credit $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{1\}$ & December $31,2023$ & Investment in Abernethy & $\backslash (\backslash$times $\backslash )$ & $691,000$ & $\backslash \backslash$

$\backslash$hline & & Cash and short$-$term investments & $\backslash (\backslash$times $\backslash )$ & & $\backslash (691,000\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{4\}\{*\}\{2\}$ & December $31,2023$ & Common stock $-$ Abernethy & $\backslash (\backslash$checkmark $\backslash )$ & $250,000$ & $\backslash \backslash$

$\backslash$hline & & Additional paid$-$in capital & $($ & $50,000$ & $\backslash \backslash$

$\backslash$hline & & Retained earnings & $($ & $264,650$ & $\backslash \backslash$

$\backslash$hline & & Investment in Abernethy & $\backslash (\backslash$checkmark $\backslash )$ & & $564,650\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{5\}\{*\}\{3\}$ & December $31,2023$ & Land & $\backslash (\backslash$checkmark $\backslash )$ & $13,100$ & $\backslash \backslash$

$\backslash$hline & & Buildings & $($ & $52,000$ & $\backslash \backslash$

$\backslash$hline & & Goodwill & $($ & $82,250$ & $\backslash \backslash$

$\backslash$hline & & Equipment & $($ & & $21,000\backslash \backslash$

$\backslash$hline & & Investment in Abernethy & $($ & & $126,350\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{4\}$ & December $31,2023$ & Equity in subsidiary earnings & $\backslash (\backslash$checkmark $\backslash )$ & $\backslash (68,800\backslash$times $\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Investment in Abernethy & $($ & & $68,800\backslash (\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{5\}$ & December $31,2023$ & Investment in Abernethy & $($ & $11,000$ & $\backslash \backslash$

$\backslash$hline & & Dividends declared & $($ & & $11,000\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{3\}\{*\}\{6\}$ & December $31,2023$ & Depreciation expense & $\backslash (\backslash$bigcirc $\backslash )$ & $8,800$ & $\backslash \backslash$

$\backslash$hline & & Equipment & $($ & $4,200$ & $\backslash \backslash$

$\backslash$hline & & Buildings & $\backslash (\backslash$bigcirc $\backslash )$ & & $13,000\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{7\}$ & December $31,2024$ & Equity in subsidiary earnings & $\backslash (\backslash$boldsymbol$\{$x$\}\backslash )$ & $\backslash (68,800\backslash$times $\backslash )*$ & $\backslash \backslash$

$\backslash$hline & & Investment in Abernethy & $\backslash (\backslash$times $\backslash )$ & & $68,800\backslash (\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{8\}$ & December $31,2024$ & Common stock $-$ Abernethy & $\backslash (\backslash$checkmark $\backslash )$ & $250,000$ & $\backslash \backslash$

$\backslash$hline & & Additional paid$-$in capital & $\backslash (\backslash$checkmark $\backslash )$ & $50,000$ & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $6$ & December $31,2023$ & Depreciation expense & $\backslash (\backslash$checkmark $\backslash )$ & $8,800$ & $\backslash \backslash$

$\backslash$hline & & Equipment & $($ & $4,200$ & $\backslash \backslash$

$\backslash$hline & & Buildings & $\backslash (\backslash$checkmark $\backslash )$ & & $13,000\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $7$ & December $31,2024$ & Equity in subsidiary earnings & $\backslash (\backslash$times $\backslash )$ & $\backslash (68,800\backslash$times $\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Investment in Abernethy & $\backslash (\backslash$times $\backslash )$ & & $68,800\backslash (\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $8$ & December $31,2024$ & Common stock $-$ Abernethy & $($ & $250,000$ & $\backslash \backslash$

$\backslash$hline & & Additional paid$-$in capital & $($ & $50,000$ & $\backslash \backslash$

$\backslash$hline & & Retained earnings & $\backslash (\backslash$checkmark $\backslash )$ & $339,650$ & $\backslash \backslash$

$\backslash$hline & & Investment in Abernethy & $\backslash (\backslash$checkmark $\backslash )$ & & $639,650\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $9$ & December $31,2024$ & Land & $\backslash (\backslash$checkmark $\backslash )$ & $13,100$ & $\backslash \backslash$

$\backslash$hline & & Buildings & $($ & $39,000$ & $\backslash \backslash$

$\backslash$hline & & Goodwill & $($ & $82,250$ & $\backslash \backslash$

$\backslash$hline & & Equipment & $($ & & $16,800\backslash \backslash$

$\backslash$hline & & Investment in Abernethy & $\backslash (\backslash$checkmark $\backslash )$ & & $117,550\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $10$ & December $31,2024$ & Equity in subsidiary earnings & $\backslash (\backslash$checkmark $\backslash )$ & $107,300$ & $\backslash \backslash$

$\backslash$hline & & Investment in Abernethy & $($ & & $107,300\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $11$ & December $31,2024$ & Investment in Abernethy & $($ & $47,000$ & $\backslash \backslash$

$\backslash$hline & & Dividends declared & $($ & & $47,000\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $12$ & December $31,2024$ & Depreciation expense & $\backslash (\backslash$checkmark $\backslash )$ & $8,800$ & $\backslash \backslash$

$\backslash$hline & & Equipment & $($ & $4,200$ & $\backslash \backslash$

$\backslash$hline & & Buildings & $($ & & $13,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Consolidation Worksheet Entries

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$12$

Prepare entry $*$C to convert parent's beginning retained earnings to full accrual basis.

Note: Enter debits before credits.

$\backslash$begin$\{$tabular$\}\{|$c$|$l$|$c$|$c$|\}$

$\backslash$hline Date & $\backslash$multicolumn$\{1\}\{$c$|\}\{$ Accounts $\}$ & Debit & Credit $\backslash \backslash$

$\backslash$hline December $31,2023$ & $$nvestment in Abernethy & $691,000$ & $\backslash \backslash$

$\backslash$hline & Cash and short$-$term investments & & $691,000\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Consolidation Worksheet Entries

$3$

$4$

$5$

$6$

$7$

$8$

$12$

Prepare entry $*$C to convert parent's beginning retained earnings to full accrual basis.

Note: Enter debits before credits.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Date & $\backslash$multicolumn$\{1\}\{$c$|\}\{$ Accounts $\}$ & Debit & Credit $\backslash \backslash$

$\backslash$hline December $31,2024$ & Equity in subsidiary earnings & $68,800$ & $\backslash \backslash$

$\backslash$hline & Investment in Abernethy & & $68,800\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$