Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)

Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, are as follows:

	Peanut Company	Snoopy Company
Assets
Cash	55,000	20,000
Accounts Receivable	50,000	30,000
Inventory	100,000	60,000
Investment in Snoopy Stock	270,000
Land	225,000	100,000
Buildings & Equipment	700,000	200,000
Accumulated Depreciation	(400,000)	(10,000)
Total Assets	1,000,000	400,000
Liabilities & Stockholders' Equity
Accounts Payable	75,000	25,000
Bonds Payable	200,000	75,000
Common Stock	500,000	200,000
Retained Earnings	225,000	100,000
Total Liabilities & Equity	1,000,000	400,000

Required:

• Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 20X8.

• Prepare a consolidation worksheet on the acquisition date, January 1, 20X8, in good form.

• Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8, in good form.