Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $315,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $315,000. 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 Peanut Company Debit Credit Debit Credit $85,000 Cash 239,000 Accounts Receivable 211,000 68,000 78,000 Inventory 199,000 315,000 203,000 700,000 281,000 69,000 Investment in Snoopy Company 0 Land 80,000 189,000 133,000 11,000 Buildings & Equipment Cost of Goods Sold Depreciation Expenseive Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock 113,000 23,000 450,000 61,000 193,000 492,000 570,000 785,000 22,000 46,000 57,000 202,000 113,000 269,000 Retained Earnings Sales Dividend Income 23,000 Total $2,574,000 $2,574,000 $709,000 $709,000 (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) 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 (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) 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 A Record the initial investment in Snoopy Company. Note: Enter debits before cred its. Event General Journal Debit Credit 1 View general journal Record entry Clear entry (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) 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 A Record Peanut Co.'s 100% share of Snoopy Co.'s 20x8 dividend Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal 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. Snoopy Co. DR CR Consolidated 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 Net income Less: Dividends declared Ending Balance 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