Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $319,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $319,000. Accumulated depreciation on this date was $20,000. Peanut uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9: Peanut Company Debit Credit Cash Accounts Receivable Inventory Investment in Snoopy Company $ 233,000 203,000 194,000 Credit Snoopy Company Debit $ 87,000 96,000 106,000 471,000 0 Land 218,000 119,000 Buildings & Equipment 720,000 217,000 Cost of Goods Sold 287,000 131,000 Depreciation Expense 55,000 20,000 Selling & Administrative Expense 234,000 62,000 Dividends Declared 241,000 40,000 Accumulated Depreciation $ 517,000 $ 60,000 Accounts Payable 56,000 27,000 Bonds Payable 146,000 67,000 Common Stock 487,000 189,000 Retained Earnings Sales Income from Snoopy Company Total 727,000 245,000 846,000 290,000 77,000 0 $2,856,000 $2,856,000 $878,000 $878,000 (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) Required: a. Prepare any equity method 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 View journal entry worksheet No Event A 1 General Journal Investment in Snoopy Company Common stock B 2 No Transaction Recorded Debit Credit 319,000 319,000 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.) PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X9 Income Statement Sales Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Income from Snoopy Co. 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 Consolidation Entries Peanut Co. Snoopy Co. DR CR Consolidated $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Common stock Retained earnings Total Liabilities & Equity $ $ 0 $ 0 $ 0 $ 0