(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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Event General Journal Debit Credit A 1 Investment in Snoopy Company Cash 304,000 $ 304,000 B 2 29.000 Cash Investment in Snoopy Company 29.000 b. Prepare a consolidation worksheet for 20X8. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) X Answer is complete but not entirely correct. PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Peanut Co. Snoopy Co. DR CR Consolidated Income Statement Sales $ $ 796.000 $ (289,000) (66.000) 260.000 x (141,000) X (13.000) X X X X 1056,000 (430,000) (79.000) Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Income from Snoopy Co. (233,000) (40,000) (273.000) 29.000 X * 0 29.000 29,000 Net income $ 237,000 $ 66 000 $ $ 0 $ 274 000 Statement of Retained Earnings Beginning balance $ > S 95 000 ex $ 95,000 X 9 525.000 Net income 66.000 29,000 274,000 525.000 237.000 (103,000) 659.000 Less: Dividends declared 29.000 (29,000) 132.000 (103.000) 696.000 Ending Balance $ 9 $ 124,000 $ 29,000 $ Ralanen Chant Sales $ 796.000 X $ (289.000) 260 000 X (141.000) X $ 1,056 000 (430,000) (66.000) Less: Cost of goods sold Less. Depreciation expense Less. Selling & Administrative expense Income from Snoopy Co (13.000) (79,000) (233,000) X (40,000) X (273,000) 29,000 X 29.000 x 237 000 $ 0 Net income $ 66.000 $ 29,000 $ 0 $ 274.000 Statement of Retained Earnings Beginning balance $ 95.000 X $ 525,000 Net income 29.000 274.000 525.000 $ 237,000 (103,000) X 9,000 $ Less: Dividends declared 95,000 X $ 66,000 (29,000) X 132,000 $ 29.000 (103,000) 696,000 Ending Balance $ 124.000 $ 29.000 $ Balance Sheet Assets Cash $ 231,000 $ $ 307.000 Accounts receivable 76,000 X 81,000 X 83,000 278,000 197,000 X 192 000 X 304,000 X Inventory Investment in Snoopy Co. 275,000 304 000 X 0 Land 210,000 302.000 92.000 X 198 000 X 13 000 886,000 Buildings & Equipment Less: Accumulated depreciation 13.000 (454,000) 701.000 X (441,000) X $ 1394,000 $ (26,000) 504,000 $ 13,000 $ 317.000 $ 1.594 000 Total Assets $ 971000 $ 56 000 $ 191,000 Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity 488.000 x 41.000 X 122.000 X 209,000 X 132.000 504,000 313,000 488.000 696.000 1.594,000 209.000 X 124,000 333,000 $ 29,000 659.000 $ $ $ $ 1.394,000 29.000 $ (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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Event General Journal Debit Credit A 1 Investment in Snoopy Company Cash 304,000 $ 304,000 B 2 29.000 Cash Investment in Snoopy Company 29.000 b. Prepare a consolidation worksheet for 20X8. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) X Answer is complete but not entirely correct. PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Peanut Co. Snoopy Co. DR CR Consolidated Income Statement Sales $ $ 796.000 $ (289,000) (66.000) 260.000 x (141,000) X (13.000) X X X X 1056,000 (430,000) (79.000) Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Income from Snoopy Co. (233,000) (40,000) (273.000) 29.000 X * 0 29.000 29,000 Net income $ 237,000 $ 66 000 $ $ 0 $ 274 000 Statement of Retained Earnings Beginning balance $ > S 95 000 ex $ 95,000 X 9 525.000 Net income 66.000 29,000 274,000 525.000 237.000 (103,000) 659.000 Less: Dividends declared 29.000 (29,000) 132.000 (103.000) 696.000 Ending Balance $ 9 $ 124,000 $ 29,000 $ Ralanen Chant Sales $ 796.000 X $ (289.000) 260 000 X (141.000) X $ 1,056 000 (430,000) (66.000) Less: Cost of goods sold Less. Depreciation expense Less. Selling & Administrative expense Income from Snoopy Co (13.000) (79,000) (233,000) X (40,000) X (273,000) 29,000 X 29.000 x 237 000 $ 0 Net income $ 66.000 $ 29,000 $ 0 $ 274.000 Statement of Retained Earnings Beginning balance $ 95.000 X $ 525,000 Net income 29.000 274.000 525.000 $ 237,000 (103,000) X 9,000 $ Less: Dividends declared 95,000 X $ 66,000 (29,000) X 132,000 $ 29.000 (103,000) 696,000 Ending Balance $ 124.000 $ 29.000 $ Balance Sheet Assets Cash $ 231,000 $ $ 307.000 Accounts receivable 76,000 X 81,000 X 83,000 278,000 197,000 X 192 000 X 304,000 X Inventory Investment in Snoopy Co. 275,000 304 000 X 0 Land 210,000 302.000 92.000 X 198 000 X 13 000 886,000 Buildings & Equipment Less: Accumulated depreciation 13.000 (454,000) 701.000 X (441,000) X $ 1394,000 $ (26,000) 504,000 $ 13,000 $ 317.000 $ 1.594 000 Total Assets $ 971000 $ 56 000 $ 191,000 Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity 488.000 x 41.000 X 122.000 X 209,000 X 132.000 504,000 313,000 488.000 696.000 1.594,000 209.000 X 124,000 333,000 $ 29,000 659.000 $ $ $ $ 1.394,000 29.000 $