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(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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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