Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $311,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $311,000. Accumulated depreciation on this date was $17,000. Peanut uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9: 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 Income from Snoopy Company Total Peanut Company Debit Credit Snoopy Company Debit Credit $ 238,000 209,000 193,000 $ 80,000 85,000 113,000 443,000 0 206,000 108,000 709,000 216,000 289,000 135,000 59,000 17,000 248,000 77,000 226,000 37,000 $ 512,000 $ 51,000 57,000 33,000 135,000 75,000 491,000 189,000 727,000 234,000 841,000 286,000 57,000 0 $ 2,820,000 $ 2,820,000 $ 868,000 $ 868,000 (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) Required: a. Prepare any equity method journal entry(ies) related to the investment in Snoopy Company during 20X9. b. Prepare a consolidation worksheet for 20X9. Income Statement Sales Less: Cost of goods sold Less: Depreciation expense Less: Selling and Administrative expense Income from Snoopy Company Net income Statement of Retained Earnings Beginning balance Net income PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X9 Peanut Company Consolidation Entries Snoopy Company Debit Credit Consolidated $ 841,000 $ 286,000 289,000 × 135,000 $ 1,127,000 424,000 59,000 × 17,000 × 76,000 248,000 > 77,000 × 325,000 57,000 57,000 0 $ 1,494,000 $ 515,000 $ 57,000 $ 0 $ 1,952,000 Less: Dividends declared 226,000 37,000 (57,000) 206,000 Ending Balance $ 226,000 $ 37,000 $ 0 $ (57,000) $ 206,000 Balance Sheet Assets Cash $ 238,000 ( $ 80,000 Accounts receivable Inventory Investment in Snoopy Company Land Buildings and Equipment Less: Accumulated depreciation Total Assets Liabilities and Equity Accounts payable Bonds payable Common stock Retained earnings $ 318,000 209,000 85,000 193,000 113,000 443,000 206,000 108,000 709,000 216,000 294,000 306,000 (443,000) 314,000 (17,000) x 942,000 17,000 17,000 $ 1,998,000 $ 602,000 $ 17,000 $ (460,000) $ 2,191,000 $ 57,000 $ 33,000 135,000 75,000 491,000 189,000 $ 90,000 210,000 680,000 226,000 37,000 263,000