Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has thefollowing trial balance:Accounts payableAccounts receivableAdditional paid-in capitalBuildings (net) (4-year remaining life)Cash and short-term investmentsCommon stockEquipment (net) (5-year remaining life)InventoryLandLong-term liabilities (mature 12/31/20)Retained earnings, 1/1/17SuppliesTotalsview transaction listNo1DateDecember 312017Debit$ 44,300137,00073,750transaction list262,500126,500100,500During 2017, Abernethy reported net income of $96,000 while declaring and paying dividends of $12,000. During 2018, Abernethyreported net income of $141,000 while declaring and paying dividends of $45,000.Accounts18,600$763,150Assume that Chapman Company acquired Abernethy's common stock for $651,300 in cash. As of January 1, 2017, Abernethy's landhad a fair value of $111,300, its buildings were valued at $199,400, and its equipment was appraised at $233,500. Chapman uses theequity method for this investment.Common stock - AbernethyAdditional paid-in capitalRetained earnings - 1/1/17Investment in AbernethyCredit$ 59,30050,000Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no try is required for atransaction/event, select "No journal entry required" in the first account field.)250,000176,000227,850$763,150DebitCredit******Ⓒ

Chapman Company obtains 100% of Abernethy Company's stock as on 1st Jan 2017. The Stock is acquired…

Answered: Prepare consolidation worksheet entries…

Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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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 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 12/31/26) Retained earnings, 1/1/23 Supplies Totals view transaction list Consolidation Worksheet Entries 2 During 2023, Abernethy reported net Income of $96,000 while declaring and paying dividends of $12,000. During 2024, Abernethy reported net Income of $141,000 while declaring and paying dividends of $45,000. Assume that Chapman Company acquired Abernethy's common stock for $651,300 In cash. As of January 1, 2023, Abernethy's land had a fair value of $111,300, its buildings were valued at $199,400, and its equipment was appraised at $233,500. Chapman uses the equity method for this Investment. Note:…
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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: 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 12/31/26) Retained earnings, 1/1/23 Supplies No 1 2 3 4 During 2023, Abernethy reported net income of $104,500 while declaring and paying dividends of $13,000. During 2024, Abernethy reported net income of $137,750 while declaring and paying dividends of $34,000. 5 Assume that Chapman Company acquired Abernethy's common stock by paying $921,650 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. 6 Required: Prepare the consolidation worksheet entries for December 31, 2023, and…
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. 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 12/31/26) Retained earnings, 1/1/23 Supplies No 1 2 3 4 5 6 During 2023, Abernethy reported net income of $126,000 while declaring and paying dividends of $16,000. During 2024, Abernethy reported net income of $174,000 while declaring and paying dividends of $49,000. 7 Assume that Chapman Company acquired Abernethy's common stock by paying $785,800 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. 8 Items Totals Required: Prepare the consolidation worksheet entries for December…
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