Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $310,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $310,000. 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 Debit Credit Cash $ 150,000 Snoopy Company Debit Credit $ 87,000 Accounts Receivable Inventory Investment in Snoopy Company Land Buildings & Equipment" 175,000 81,000 215,000 92,000 329,000 212,000 99,000 712,000 182,000 Cost of Goods Sold 217,000 127,000 Depreciation Expense. 68,000 13,000 Selling & Administrative Expense 240,000 57,000 Dividends Declared 107,000 40,000 Accumulated Depreciation $ 436,000 $ 26,000 Accounts Payable. 61,000 46,000 Bonds Payable 182,000 140,000 Common Stock 492,000 212,000 Retained Earnings 403,000 98,000 Sales 792,000 256,000 Income from Snoopy Company 59,000 Total $2,425,000 $2,425,000 $778,000 $778,000 (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 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.) View transaction list Journal entry worksheet < A B C Record the initial investment in Snoopy Company. Note: Enter debits before credits. Event 1 General Journal Debit Credit Required: a. Prepare the journal entries on Peanut's 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.) View transaction list Journal entry worksheet < A B C Record Peanut Co.'s 100% share of Snoopy Co.'s 20X8 income. Note: Enter debits before credits. Event 2 General Journali Debit Credit Next > Required: a. Prepare the journal entries on Peanut's 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.) View transaction list Journal entry worksheet < A B C Record Peanut Co.'s 100% share of Snoopy Co.'s 20X8 dividend. Note: Enter debits before credits. Event 3 General Journal Debit Credit 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 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 December 31, 20X8 Consolidation Entries Peanut Co. Snoopy Co. DR CR Consolidated $ 0 $ 0 $ 0 $ 05 0 Ending Balance $ 0 $ 0 $ 0 S 0 $ Balance Sheet Assets Cash Accounts receivable) Inventory Investment in Snoopy Co. Land Buildings & Equipment Less Accumulated depreciation Total Assets Liabilities & Equity $ 0 $ 0 S 0 S 0 $ 0 Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity $ 0 S 0 $ 0 $ 0 $ 0