Peanut Company acquired 100 percent of Snoopy Companys outstanding common stock for $313,000 on January 1, 20X8, when the book value of Snoopys net assets was equal to $313,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:

Peanut Company Snoopy Company

Debit Credit Debit Credit

Cash $ 145,000 $ 79,000

Accounts Receivable 178,000 80,000

Inventory 205,000 79,000

Investment in Snoopy Company 355,000 0

Land 211,000 95,000

Buildings & Equipment 716,000 193,000

Cost of Goods Sold 205,000 138,000

Depreciation Expense 57,000 14,000

Selling & Administrative Expense 242,000 41,000

Dividends Declared 110,000 28,000

Accumulated Depreciation $ 435,000 $ 28,000

Accounts Payable 55,000 40,000

Bonds Payable 193,000 103,000

Common Stock 499,000 212,000

Retained Earnings 386,000 101,000

Sales 786,000 263,000

Income from Snoopy Company 70,000 0

Total $ 2,424,000 $ 2,424,000 $ 747,000 $ 747,000

(Assume the company prepares the optional Accumulated Depreciation Elimination Entry)

Required:

a. Prepare the journal entries on Peanuts 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.)

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" c