december 2020

2. prepare entry A to recognize Goodwill portion of the original acquisition fair value.

3. prepare entry I to illuminate intra-entity Income accrual for the current year based on the parents usage of the partial equity method.

5. Prepare entry E to recognize 2020 amortization expense

december 2021

6. Prepare entry *c to convert parent Company figures to equity method

7. Prepare entry S to eliminate stockholders equity accounts of subsidiary for 2021

8. prepare entry A to recognize original Goodwill balance

9. prepare entry I to eliminate interroentity income across for the current year.

10. Prepare entry D to eliminate entry into the dividend transfers.

11. repair entry E to recognize 21 amortization expense

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Credit $ 57,300 Accounts payable Accounts receivable $ 42,200 Additional paid-in capital 50,000 214,000 Buildings (net) (4-year remaining life) Cash and short-term investments Common stock 82,250 250,000 Equipment (net) (5-year remaining Life) 375,000 Inventory 90,500 Land 117,000 170,000 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 409,650 Supplies 16,000 Totals $936,950 $ 936,950 During 2020, Abernethy reported net income of $117,500 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $171,250 while declaring and paying dividends of $55,000. Assume that Chapman Company acquired Abernethy's common stock for $816,280 in cash. Assume that the equipment and long-term liabilities had fair values of $396,950 and $140,720, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment. Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 5 7 8 Prepare entry 5 to eliminate stockholders' equity accounts of subsidiary