(Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) Required: a. Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any other e to the investment in Snoopy Company during 20X8. b. Prepare a consolidation worksheet for 20X8.
(Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) Required: a. Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any other e to the investment in Snoopy Company during 20X8. b. Prepare a consolidation worksheet for 20X8.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Question
A6
![Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $314,000 on January 1, 20X
book value of Snoopy's net assets was equal to $314,000. Peanut chooses to carry the investment in Snoopy at cost beca
investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:
Cash
Accounts Receivable
Inventory
Investment in Snoopy Company
Land
Buildings and Equipment
Cost of Goods Sold
Depreciation Expense
Selling and Administrative Expense
Dividends Declared
Accumulated Depreciation
Accounts Payable
Bonds Payable
Common Stock
Retained Earnings
Sales
Dividend Income
Total
Required A Required B
View transaction list
Peanut Company
Journal entry worksheet
Debit
$ 235,000
203,000
187,000
314,000
211,000
714,000
277,000
70,000
A
237,000
111,000
B
$ 2,559,000
Credit
$ 435,000
59,000
198,000
(Assume the company prepares the optional Accumulated Depreciation Elimination Entry.)
Required:
495,000
559,000
780,000
33,000
$ 2,559,000
Snoopy Company
Debit
$ 71,000
74,000
93,000
0
88,000
185,000
144,000
a. Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any other er
to the investment in Snoopy Company during 20X8.
b. Prepare a consolidation worksheet for 20X8.
Complete this question by entering your answers in the tabs below.
14,000
52,000
33,000
$ 754,000
Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any other entries
the investment in Snoopy Company during 20X8.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Record Peanut Company's 100% share of Snoopy Company's 20X8 dividend.
Credit
$ 28,000
44,000
104,000
216,000
98,000
264,000
0
$ 754,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fe591d1-b20e-4716-b178-bb74293a145f%2Fb531a293-35d8-4aee-895b-254f37085a12%2Fxjdo3ff_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $314,000 on January 1, 20X
book value of Snoopy's net assets was equal to $314,000. Peanut chooses to carry the investment in Snoopy at cost beca
investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:
Cash
Accounts Receivable
Inventory
Investment in Snoopy Company
Land
Buildings and Equipment
Cost of Goods Sold
Depreciation Expense
Selling and Administrative Expense
Dividends Declared
Accumulated Depreciation
Accounts Payable
Bonds Payable
Common Stock
Retained Earnings
Sales
Dividend Income
Total
Required A Required B
View transaction list
Peanut Company
Journal entry worksheet
Debit
$ 235,000
203,000
187,000
314,000
211,000
714,000
277,000
70,000
A
237,000
111,000
B
$ 2,559,000
Credit
$ 435,000
59,000
198,000
(Assume the company prepares the optional Accumulated Depreciation Elimination Entry.)
Required:
495,000
559,000
780,000
33,000
$ 2,559,000
Snoopy Company
Debit
$ 71,000
74,000
93,000
0
88,000
185,000
144,000
a. Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any other er
to the investment in Snoopy Company during 20X8.
b. Prepare a consolidation worksheet for 20X8.
Complete this question by entering your answers in the tabs below.
14,000
52,000
33,000
$ 754,000
Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any other entries
the investment in Snoopy Company during 20X8.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Record Peanut Company's 100% share of Snoopy Company's 20X8 dividend.
Credit
$ 28,000
44,000
104,000
216,000
98,000
264,000
0
$ 754,000
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