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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 $-$ $ $52,800$

Accounts receivable $ $49,500-$

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

Buildings $($net$)(4-$year remaining life$)174,000-$

Cash and short$-$term investments $84,000$

Common stock $-250,000$

Equipment $($net$)(5-$year remaining life$)315,000-$

Inventory $137,500-$

Land $90,500-$

Long$-$term liabilities $($mature $12/31/26)-188,500$

Retained earnings, $1/1/23-323,600$

Supplies $14,400-$

Totals $ $864,900$ $ $864,900$

During $2023,$ Abernethy reported net income of $$129,000$ while declaring and paying dividends of $$16,000.$ During $2024,$ Abernethy reported net income of $$176,000$ while declaring and paying dividends of $$38,000.$

Assume that Chapman Company acquired Abernethy$$s common stock by paying $$768,600$ in cash. All of Abernethy$$s accounts are estimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to account for its investment.

Required:

Prepare the consolidation worksheet entries for December $31,2023,$ and December $31,2024.$

$1)$Prepare entry S to eliminate stockholders' equity accounts of subsidiary.

$2)$Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.

$3)$Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$4)$PrPrepare entry E to recognize $2023$ amortization expense.epare entry D to eliminate intra$-$entity dividend transfers.

$5)$Prepare entry E to recognize $2023$ amortization expense.

$6)$Prepare entry $*$C to convert parent company figures to equity method.

$7)$PrePrepare entry A to recognize allocations attributed to specific accounts at acquisition date.pare entry S to eliminate stockholders' equity accounts of subsidiary for $2024.$

$8)$Prepare entry A to recognize allocations attributed to specific accounts at acquisition date.

$9)$Prepare entry I to eliminate the subsidiary income accrual recognized by the parent.

$10)$Prepare entry D to eliminate Intra$-$entity dividend transfers.

$11)$Prepare entry E to recognize $2024$ amortization expense.

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