Check my work Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $304,000 on January 1 20x8, when the book value of Snoopy's net assets was equal to $304,000. 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: Snoopy Company Debit Credit 88,000 Cash Recounts Receivable Inventory Investment in Snoopy Company Land Buildings & Equipment Coat of Good Sold Depreciation Expense Selling Ministrative Expense Dividenda Declared Memulated Depreciation Recounts Payable Bonds Payable 231,000 202.000 184.000 304.000 217,000 712.000 207.000 61.000 248,000 116,000 References 190,000 134,000 19.000 60.000 33.000 49.000 61,000 197,000 492,000 530,000 800.000 $ 30,000 16.000 114.000 207.000 97.000 262.000 Retained Earnings Dividend Income Total $2.562,000 $2,562.000 5764,000 (Assume the company prepares the optional Accumulated Depreciation Elimination Entry) Check my work Regulred: a. Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20XB, 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.) points View transaction list Look Journal entry worksheet Reference Record the initial investment in Snoopy Company Note Enter debits before credits Debit Credit General Journal Event Check my work 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.) points PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20x8 Consolidation Entries Peanut Co. Snoopy Co. DR CR References Consoldated Income Statement Sales Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Dividend income Net income Statement of Retained Earnings Beginning balance Check my work Net income Less: Dividends declared Ending Balance ebook Balance Sheet Assets Cash SESSIONAL 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 Proy 1 of 2 Next >
