b

Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $280,000 on January 1, 20x8, when the book value of Snoopy's net assets was equal to $350,000. 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 & Administrative Expenso Dividends Declared Accumulated Depreciation Accounts Payable Bonda Payable Common Stock Retained Earnings Sales Income from Snoopy Company Total Peanut Company Debit Credit $ 270,000 194,000 199,000 315,200 208,000 709,000 350,000 45,000 217,000 220,000 S495,000 72.000 137,000 491,000 615,000 848,000 79,200 $2,727,200 $2,727,200 Snoopy Company Debit Credit $ 77,000 82,000 112,000 0 81,000 195,000 151,000 13,000 48,000 39,000 $ 39,000 39,000 75,000 183,000 151,000 311,000 0 $ 798,000 $ 798,000 Required: a. Prepare any equity method journal entryfies) related to the investment in Snoopy Company during 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Event Answer is not complete. General Journal Investment in Snoopy Co Income from Snoopy Co. Credit 1 1 Debit 350,000 350,000 2 2 Cash Investment in Snoopy Co. Check my work mode : This! b. Prepare a consolidation worksheet for 20X9. Assume the company prepares the optional Accumulated Depreciation Consolidatic Entry and that the depreciation expense was the same amount in both 20X8 and 20X9. (Values in the first two columns (the "pare 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 ir one amount and enter this amount in the credit column of the worksheet.) Consolidated Answer is not complete. PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet January 1, 20X9 Consolidation Entries Peanut Snoopy DR CR Co Co. Income Statement Sales Less: COGS Less: Depreciation expense Less: Selling & Administrative Expense Income from Snoopy Co Consolidated net income 0 0 0 NCI in net income Controlling Interest in Net Income 0 $ $ 0 Is 0 Statement of Retained Earnings Beginning balanon Not Income Less: Dividends declared Ending Balance $ 0 $ 0 $ 0 $ 0 Balance Sheet Assets Cash Accounts receivable Inventory 0 0 0 0 S 0 $ 0 $ 0 $ 0 0 S 0 0 $ 0 $ 0 Inventory Investment in Snoopy Co. Land Buildings and equipment Accumulated depreciation Total Assets Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Retained earnings NCI IN NA of Snoopy Co Total Liabilities & Stockholders' Equity $ 0 s 0 IS 0 $ 0 $ 0