Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $300,000. Problem 3-34 summarizes the first year of Peanut's ownership of Snoopy.

In Problem 3-34

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:

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 in goodform.

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Peanut Company Debit Snoopy Company Credit Debit Credit Cash Accounts Receivable Inventory Investment in Snoopy Stock Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation 158,000 165,000 200,000 319,500 200,000 700,000 200,000 80,000 65,000 75,000 100,000 200,000 50,000 225,000 100,000 125,000 10,000 40,000 20,000 Bonds Payable Common Stock Retained Earnings Sales Income from Snoopy Total 450,000 75,000 200,000 500,000 225,000 800,000 67,500 2,317,500 20,000 60,000 85,000 200,000 100,000 250,000 2,317,500 715,000 715,000 Peanut Company Debit Snoopy Company Credit Debit Credit Cash Accounts Receivable Inventory Investment in Snoopy Stock Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense 255,000 190,000 180,000 364,500 200,000 700,000 270,000 75,000 80,000 100,000 50,000 230,000 225,000 100,000 200,000 150,000 10,000 60,000 30,000 Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings 500,000 75,000 150,000 500,000 517,500 850,000 72,000 2,664,500 30,000 35,000 85,000 200,000 155,000 300,000 Income from Snoopy 2,664,500 805,000 805,000