es Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Common stock Equipment (net) (5-year remaining life) Inventory Land Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 Supplies Totals Debit $ 40,400 128,000 68,750 407,500 119,000 82,000 15,600 $861,250 Credit $ 50,900 50,000 250,000 171,500 338,850 $ 861,250 During 2020, Abernethy reported net income of $124,000 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $164,750 while declaring and paying dividends of $60,000. Assume that Chapman Company acquired Abernethy's common stock for $756,500 in cash. As of January 1, 2020, Abernethy's land had a fair value of $93,100, its buildings were valued at $194,800, and its equipment was appraised at $366,250. Chapman uses the equity method for this 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.)
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date. Abernethy has the following trial balance: During 2020, Abernethy reported net income of $124,000 while declaring and paying dividends or $16,000, During 2021, Abernethy reported net income of $164,750 while declaring and paying dividends of $60,000 Assume that Chapman Company acquired Abernethy's common stock for $756,500 in cash. As of January 1, 2020, Abernethy's land had a fair value of $93,100, its buildings were valued at $194,800, and its equipment was appraised at $366,250. Chapman uses the equity method for this 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
