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Chapman Company obtains 100 percent of Abernethy Companys stock on January 1, 2020. As of that date, Abernethy has the following trial balance:

	Debit			Credit
Accounts payable				$	56,700
Accounts receivable	$	43,800
Additional paid-in capital					50,000
Buildings (net) (4-year remaining life)		143,000
Cash and short-term investments		80,250
Common stock					250,000
Equipment (net) (5-year remaining life)		295,000
Inventory		110,500
Land		112,000
Long-term liabilities (mature 12/31/23)					171,000
Retained earnings, 1/1/20					268,750
Supplies		11,900
Totals	$	796,450		$	796,450

During 2020, Abernethy reported net income of $122,500 while declaring and paying dividends of $15,000. During 2021, Abernethy reported net income of $159,250 while declaring and paying dividends of $49,000.

Assume that Chapman Company acquired Abernethys common stock for $675,790 in cash. Assume that the equipment and long-term liabilities had fair values of $316,300 and $137,960, 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.)

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