Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that...

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

business accounting

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Answer 1

Answer #1

Consolidation worksheet entries:

date

accounts tittle

debit ($)

credit ($)

Dec 31 2020

Land

Building

Equipment

Land

Buildings

equipment

(being revaluation of Abernethy assets adjusted
	to Equity investment)

122700

185200

353250

110000

126000

390000

Dec 31 2020

Equity investment in Abernethy

Abernethy's Net Income

(being abernethy 2020's net income transferred to equity investment)

108500

Dec 31 2020

Cash

Equity investment in Abernethy

14000

Dec 31 2021

Equity investment in Abernethy

Abernethy's Net Income

(being abernethy 2018's net income transferred to equity investment)

139750

Dec 31 2021

Cash

Equity investment in Abernethy

(being abernethy 2021 dividend adjusted
	to Equity investment)

54000

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Answer 2

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