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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:

Items Debit Credit

Accounts payable $-$ $ $51,900$

Accounts receivable $ $43,100-$

Additional paid$-$in capital $-50,000$

Buildings $($net$)(4-$year remaining life$)175,000-$

Cash and short$-$term investments $75,500-$

Common stock $-250,000$

Equipment $($net$)(5-$year remaining life$)439,500-$

Inventory $127,000-$

Land $116,500-$

Long$-$term liabilities $($mature $12/31/26)-170,500$

Retained earnings, $1/1/23-464,900$

Supplies $10,700-$

Totals $ $987,300$ $ $987,300$

During $2023,$ Abernethy reported net income of $$87,000$ while declaring and paying dividends of $$11,000.$ During $2024,$ Abernethy reported net income of $$122,500$ while declaring and paying dividends of $$55,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$873,250$ in cash. As of January $1,2023,$ Abernethy$$s land had a fair value of $$129,800,$ its buildings were valued at $$243,800,$ and its equipment was appraised at $$403,750.$ Chapman uses the equity method for this investment.

Required:

Prepare 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.

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

Prepare entry S to eliminate stockholders' equity accounts of subsidiary.

Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.

Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

Prepare entry D to eliminate intra$-$entity dividend transfers.

Prepare entry E to recognize current year amortization expense.

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

Prepare entry S to eliminate stockholders' equity accounts of subsidiary for $2024.$

Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for $2024.$

Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

Prepare entry D to eliminate intra$-$entity dividend transfers.

Prepare entry E to recognize current year amortization expense.

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