Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $310,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $310,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Peanut Company Debit Credit Cash $ 133,000 Snoopy Company Debit $ 82,000 Credit Accounts Receivable 171,000 Inventory 211,000 71,000 79,000 Investment in Snoopy Company 325,000 0 Land 207,000 96,000 Buildings and Equipment 711,000 185,000 Cost of Goods Sold 218,000 144,000 Depreciation Expense 50,000 17,000 Selling and Administrative Expense 227,000 48,000 Dividends Declared 115,000 38,000 Accumulated Depreciation $ 434,000 $ 34,000 Accounts Payable 73,000 58,000 Bonds Payable 189,000 96,000 Common Stock 488,000 217,000 Retained Earnings 340,000 93,000 Sales 791,000 Income from Snoopy Company 53,000 262,000 0 Total $ 2,368,000 $ 2,368,000 $ 760,000 $ 760,000 (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 normal equity method entry(ies) related to the investment in Snoopy Company during 20X8. b. Prepare a consolidation worksheet for 20X8. Required A Required B Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any normal equity method entry(ies) related to 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. No Event General Journal A 1 Investment in Snoopy Company Cash B 2 Income from Snoopy Company Investment in Snoopy Company с 3 Dividend declared Dividend income 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, 20X8 Debit Credit 310,000 310,000 53,000 53,000 115,000 × 115,000 Consolidation Entries Peanut Company Snoopy Company Debit Credit Consolidated S 791,000 (218,000) (50,000) (144,000) (17,000) 17,000 (227,000) S 791,000 (362,000) (84,000) (227,000) 53,000 (53,000) S 349,000 $ (161,000) $ (36,000) $ 0 $ 118,000 Less: Dividends declared (115,000) (38,000) (153,000) Ending Balance $ (115,000) $ (38,000) S 0 S 0 S (153,000) Balance Sheet Assets Cash S 133,000 S 82,000 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 79,000 171,000 211,000 325,000 207,000 711,000 × 96,000 × 185,000 (434,000) (73,000) $ 709,000 $ 984,000 $ $ (189,000) $ (34,000) (96,000) > (488,000) x (217,000) $ 215,000 171,000 290,000 325,000 918,000 281,000 (507,000) 0 $ 0 $ 1,693,000