Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $312.000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $312.000. Accumulated depreciation on this date was $16,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9: Cash Snoopy Company Debit Credit $ 83,000 88.000 103,000 Accounts Receivable Inventory Investment in Snoopy Company Tand Buildings & Equipment Cont of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total Peanut Company Debit Credit 243,000 194,000 181,000 312,000 213.000 707,000 281,000 70,000 239,000 241,000 $ 508,000 60,000 140.000 485,000 615,000 837,000 36,000 $2,681,000 $2,681,000 109,000 213,000 131,000 16.000 69,000 36.000 $ 48,000 16,000 78,000 198,000 227.000 281.000 $84,000 $848,000 Required: a. Prepare any journal entry(ies) related to the investment in Snoopy Company during 20X9. (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 Record Peanut Co.'s 100% share of Snoopy Co.'s 20x9 dividend. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal b. Prepare a consolidation worksheet for 20X9. (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.) CO PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X9 Consolidation Entries Peanut Snoopy DR CR Consolidated Co. Income Statement Sales Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Dividend income Net income $ 0 $ O $ 0 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance $ 0 $ 0 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 $ 0 $ 0 $ 0 $ 0 $ $ OS
