Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. 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 12/31/23)Retained earnings, 1/1/20Supplies1Totals234During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13,000. During 2021, Abernethyreported net income of $136,750 while declaring and paying dividends of $36,000.57Assume that Chapman Company acquired Abernethy's common stock for $605,600 in cash. As of January 1, 2020, Abernethy's landhad a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164,500. Chapman uses theequity method for this investment.No68Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)9101112DateDecember 31, 202i No journal entry requiredDecember 31, 2021 LandBuildingsGoodwillDecember 31, 2021 Common stock-AbernethyAdditional paid-in capitalRetained earnings-1/1/20Investment in AbernethyDecember 31, 2021 Investment in AbernethyDividends declaredDebit$ 44,700December 31, 2021 Depreciation expenseEquipmentBuildings163,00083,750EquipmentInvestment in AbernethyDecember 31, 202 Investment in Abernethy207.500122,00085,50013,300$719,758December 31, 2021 Equity in subsidiary earningsInvestment in AbernethyDecember 31, 202 LandBuildingsGoodwillRetained earnings-1/1/20AccountsDecember 31, 202 Common stock-AbernethyAdditional paid-in capitalRetained earnings-1/1/21December 31, 202 Investment in AbernethyDividends declaredDecember 31, 202 Depreciation expenseEquipmentEquipmentInvestment in AbernethyCredit$ 55,10050,000December 31, 202 Equity in subsidiary earningsInvestment in Abernethy250,000162,500292,150$ 719,750✔✔•✔✔•✔•✓3310 000Xx>>>00000✓✔33✔Debit250,000✔50,000✔202,15016,300✔64,40065,75097,50013,000✔7,500✔also I tried this answer $ 84500 but it is wrong too (103000 -(13000+7500))=845008,600294,150 x250,00050,000✔294,150✔16,300✔48,300✔65,750129,250✔36,000✔7,500✔8,600✔Credit502,15043,000✔103,45097,50013,000✔16,100✔294,150 x594,15034,400✔95,950✔129,25036,000✔I just need question number 7 which is: Prepare entry *C (asterisk C) to convertparent's beginning retained earnings to full accrual basis

Journal - A journal is a thorough account that documents all of a business's financial activities.…

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 Fquipment (not) (5-year remaining life) Inventory Land Long-tere liabilities (nature 12/31/23) Retained earnings, 1/1/20 Supplies Totals Dobit $ 44,700 163,000 85,750 707,500 122,000 13,300 $719,758 Credit $ 55,100 50,000 250,000 162,500 292,150 719,748 During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13.000. During 2021, Abernethy reported net income of $136.750 while declaring and paying dividends of $36.000. Assume that Chapman Company acquired Abernethy's common stock for $605,600 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164.500. Chapman uses the equity method for this investment.

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 Fquipment (not) (5-year remaining life) Inventory Land Long-tere liabilities (nature 12/31/23) Retained earnings, 1/1/20 Supplies Totals Dobit $ 44,700 163,000 85,750 707,500 122,000 13,300 $719,758 Credit $ 55,100 50,000 250,000 162,500 292,150 719,748 During 2020, Abernethy reported net income of $105,000 while declaring and paying dividends of $13.000. During 2021, Abernethy reported net income of $136.750 while declaring and paying dividends of $36.000. Assume that Chapman Company acquired Abernethy's common stock for $605,600 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,800, its buildings were valued at $227,400, and its equipment was appraised at $164.500. Chapman uses the equity method for this investment.

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, 2020. As of that date, Abernethy has the following trial balance: Credit $ 57,300 Debit Accounts payable Accounts receivable Additional paid-in capital Buildings (net) (4-year renaining life) Cash and short-term investnents Common stock Equipment (net) (5-year remaining life) Inventory Land Long-tern liabilities (mature 12/31/23) Retained earnings, 1/1/20 Supplies Totals $ 42,200 50, 000 214, 000 82,250 250,000 375,000 98,500 117,000 170,000 409,650 16, 000 $936,950 $ 936, 950 During 2020, Abernethy reported net income of $117,500 while declaring and paying dividends of $15.000. During 2021, Abernethy reported net income of $171,250 while declaring and paying dividends of $55,000, Assume that Chapman Company acquired Abernethy's common stock for $816.280 in cash. Assume that the equipment and long-term liabilities had fair values of $396,950 and $140,720. respectively, on the acquisition date. Chapman uses…
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 $ 49,500 174,000 84,000 view transaction list 315,000 137,500 90,500 Consolidation 14,400 $864,900 Credit $ 52,800 50,000 250,000 188,500 323,600 During 2020, Abernethy reported net income of $129,000 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $176,000 while declaring and paying dividends of $38,000. $ 864,900 Assume that Chapman Company acquired Abernethy's common stock for $733,100 in cash. As of January 1, 2020, Abernethy's land had a fair value of $101,000, its buildings were valued at $242,000, and…
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Credit $ 50,500 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 $ 44,100 50,000 166,000 79,250 250,000 292,500 100,500 128,000 Land Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 Supplies 188,000 288,850 17,000 Totals $827,350 $ 827,350 During 2020, Abernethy reported net income of $103,000 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $144,250 while declaring and paying dividends of $58,000. Assume that Chapman Company acquired Abernethy's common stock for $694,300 in cash. As of January 1, 2020, Abernethy's land had a fair value of $142,700, its buildings were valued at $210,000, and its equipment was appraised at…
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 view transaction list Consolidation Worksheet Entries
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 $ 43,900 217,000 76,750 367,500 96,500 122,000 11,500 $935,150 Credit $ 56,400 50,000 250,000 182,500 396,250 $935, 150 During 2020, Abernethy reported net income of $103,500 while declaring and paying dividends of $13,000. During 2021, Abernethy reported net income of $145,250 while declaring and paying dividends of $47,000. Assume that Chapman Company acquired Abernethy's common stock for $800,660 in cash. Assume that the equipment and long- term liabilities had fair values of $390,450 and $151,340, respectively, on the acquisition date. Chapman uses the…
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 $ $ 40,000 120,000 60,000 200,000 90,000 80,000 10,000 600,000 Credit $ 50,000 50,000 250,000 150,000 100,000 $ 600,000 During 2020, Abernethy reported net income of $80,000 while declaring and paying dividends of $10,000. During 2021, Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000. Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January 1, 2020, Abernethy's land had a fair value of $90,000, its buildings were valued at $160,000, and its equipment was appraised at $180,000.…
rroDiems 19 through 21 should be viewed as independent situations. They are based on the following data: Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Page 136 Debit Credit Accounts payable $ 50,000 Accounts receivable $ 40,000 Additional paid-in capital Buildings (net) (4-year remaining life) 50,000 120,000 Cash and short-term investments 60,000 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory 200,000 90,000 Land 80,000 Long-term liabilities (mature 12/31/23) 150,000 Retained earnings, 1/1/20 100,000 Supplies 10,000 $600,000 $600,000 Totals During 2020, Abernethy reported net income of $80,000 while declaring and paying dividends of $ 10,000. During 2021, Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000. LO 3-3a 1. Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January 1, 2020,…
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