Check my work Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $318,000 on January 1 20x8, when the book value of Snoopy's net assets was equal to $318,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20x8, are as follows: Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Tarnings Sales Dividend Income Total Peanut Company Debit Credit $ 236,000 209,000 200,000 318.000 200,000 712,000 277,000 53,000 249,000 116.000 $444,000 56,000 195.000 435,000 585.000 783,000 22.000 52,570,000 $2,590,000 Snoopy Company Debit Credit $ 87,000 70,000 82,000 0 37,000 195,000 128,000 20,000 58.000 22.000 $ 40,000 41,000 37,000 211,000 107,000 263.000 $749,000 $749,000 Assume the company prepares the optional Accumulated Depreciation Elimination Entry) Required: Check my work Required: a Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20x8, as well as any other entries 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.) View transaction list Journal entry worksheet B Record the initial investment in Snoopy Company to enter debts before credite General Journal PS 1 of 2 Next > 3:49P Check Required: a Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1 20x8, as well as any other entries rel 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.) View transaction list Journal entry worksheet B Record Peanut Co.S 100% share of Snoopy Co.'s 20x8 dividend, hoteller debits before credits Goal Journal Dobit Even 2 Prax 1 of 2!! Next > 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.) PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Peanut Co Shoopy Co DR Consolidated Income Statement Sales Los Cost of goods sold Loss Depreciation expense Less Selling & Administrative expense Dividend income Net Income $ 783 000 $ 277 000 53.000 249,000 22 000 $ 1384 000 $ 263.000 128.000 20,000 58.000 0 169.000 $ 1.046,000 405,000 73.000 307.000 22.000 22 000 $ 05.1831,000 3 5 Statement of Retained Earnings Beginning balance Not Income Dividends declared 585000 5 1.384.000 116.000 107.000 22.000 107.000 5 469,000 22.000 505.000 1.831000 160.000 22.000 int: Mergers and Acquisitions Repo Savo Help Save & Exit Submit Check my work 107.000 22.000 Beginning balance Net income Los Dividends declared Ending Balance $ 585,000 $ 1.384.000 116.000 5 2.085,000 $ 107.000 5 459,000 22.000 598 000 $ $ 585,000 1.831,000 22,000 160,000 22 000 5 2576.000 129.000 5 $ 87,000 70,000 82,000 236,000 5 209,000 200.000 310,000 200.000 712.000 318.000 Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Co. Land Buildings & Equipment Less Accumulated depreciation Total Assets Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity 323.000 279.000 202.000 0 287.000 907.000 (414000) 1634000 87.000 195.000 444 000 762.000 5 5 1.875,000 $ 521.000 $ 05 5 56.000 s 195,000 485.000 2.085 000 $ 2,621,000 5 41.000 87 000 211.000 590,000 937000 211.000 129.000 340.000 1 97.000 202.000 135 000 2,576,000 5410.000 22.000 22.000 Check my work Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $318,000 on January 1 20x8, when the book value of Snoopy's net assets was equal to $318,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20x8, are as follows: Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Tarnings Sales Dividend Income Total Peanut Company Debit Credit $ 236,000 209,000 200,000 318.000 200,000 712,000 277,000 53,000 249,000 116.000 $444,000 56,000 195.000 435,000 585.000 783,000 22.000 52,570,000 $2,590,000 Snoopy Company Debit Credit $ 87,000 70,000 82,000 0 37,000 195,000 128,000 20,000 58.000 22.000 $ 40,000 41,000 37,000 211,000 107,000 263.000 $749,000 $749,000 Assume the company prepares the optional Accumulated Depreciation Elimination Entry) Required: Check my work Required: a Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20x8, as well as any other entries 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.) View transaction list Journal entry worksheet B Record the initial investment in Snoopy Company to enter debts before credite General Journal PS 1 of 2 Next > 3:49P Check Required: a Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1 20x8, as well as any other entries rel 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.) View transaction list Journal entry worksheet B Record Peanut Co.S 100% share of Snoopy Co.'s 20x8 dividend, hoteller debits before credits Goal Journal Dobit Even 2 Prax 1 of 2!! Next > 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.) PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Peanut Co Shoopy Co DR Consolidated Income Statement Sales Los Cost of goods sold Loss Depreciation expense Less Selling & Administrative expense Dividend income Net Income $ 783 000 $ 277 000 53.000 249,000 22 000 $ 1384 000 $ 263.000 128.000 20,000 58.000 0 169.000 $ 1.046,000 405,000 73.000 307.000 22.000 22 000 $ 05.1831,000 3 5 Statement of Retained Earnings Beginning balance Not Income Dividends declared 585000 5 1.384.000 116.000 107.000 22.000 107.000 5 469,000 22.000 505.000 1.831000 160.000 22.000 int: Mergers and Acquisitions Repo Savo Help Save & Exit Submit Check my work 107.000 22.000 Beginning balance Net income Los Dividends declared Ending Balance $ 585,000 $ 1.384.000 116.000 5 2.085,000 $ 107.000 5 459,000 22.000 598 000 $ $ 585,000 1.831,000 22,000 160,000 22 000 5 2576.000 129.000 5 $ 87,000 70,000 82,000 236,000 5 209,000 200.000 310,000 200.000 712.000 318.000 Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Co. Land Buildings & Equipment Less Accumulated depreciation Total Assets Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity 323.000 279.000 202.000 0 287.000 907.000 (414000) 1634000 87.000 195.000 444 000 762.000 5 5 1.875,000 $ 521.000 $ 05 5 56.000 s 195,000 485.000 2.085 000 $ 2,621,000 5 41.000 87 000 211.000 590,000 937000 211.000 129.000 340.000 1 97.000 202.000 135 000 2,576,000 5410.000 22.000 22.000