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9points Return to question Item9 Peanut Company acquired 90 percent of Snoopy Companys outstanding common stock for $267,300 on January 1, 20X8, when the book
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Item9
Peanut Company acquired 90 percent of Snoopy Companys outstanding common stock for $267,300 on January 1, 20X8, when the book value of Snoopys net assets was equal to $297,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, follow:
Peanut CompanySnoopy CompanyDebitCreditDebitCreditCash$ 176,000$ 70,000Accounts Receivable175,00077,000Inventory211,00077,000Investment in Snoopy Company316,800Land208,00082,000Buildings and Equipment716,000186,000Cost of Goods Sold199,000107,000Depreciation Expense41,0009,000Selling & Administrative Expense219,00043,000Dividends Declared97,00025,000Accumulated Depreciation$ 436,000$ 18,000Accounts Payable69,00054,000Bonds Payable187,00068,000Common Stock499,000199,000Retained Earnings305,80098,000Sales790,000239,000Income from Snoopy Company72,0000Total$ 2,358,800$ 2,358,800$ 676,000$ 676,000Prepare a consolidation worksheet for 20X8. Assume the company prepares the optional Accumulated Depreciation Consolidation Entry.
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