Peanut Company acquired 100 percent of Snoopy Companys outstanding common stock for $318,000 on January 1, 20X8, when the book value of Snoopys net assets was equal to $318,000. 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	$ 134,000		$ 72,000
Accounts Receivable	183,000		71,000
Inventory	218,000		88,000
Investment in Snoopy Company	331,000		0
Land	208,000		92,000
Buildings and Equipment	709,000		200,000
Cost of Goods Sold	214,000		133,000
Depreciation Expense	61,000		11,000
Selling and Administrative Expense	226,000		56,000
Dividends Declared	107,000		39,000
Accumulated Depreciation		$ 440,000		$ 22,000
Accounts Payable		74,000		59,000
Bonds Payable		199,000		111,000
Common Stock		499,000		208,000
Retained Earnings		333,000		110,000
Sales		794,000		252,000
Income from Snoopy Company		52,000		0
Total	$ 2,391,000	$ 2,391,000	$ 762,000	$ 762,000

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.

b. Prepare a consolidation worksheet for 20X8.

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.

A. Record the initial investment in Snoopy Company.

B. Record Peanut Co.'s 100% share of Snoopy Co.'s 20X8 income.

C. Record Peanut Co.'s 100% share of Snoopy Co.'s 20X8 dividend.