Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $300,000. Accumulated depreciation on this date was $10,000. 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, 209: Peanut Company Debit Credit Cash Accounts Receivable Inventory 230,000 Snoopy Company Debit $ 75,000 Credit 190,000 180,000 80,000 100,000 Investment in Snoopy Company 405,000 0 Land Buildings & Equipment Cost of Goods Sold 200,000 100,000 700,000 200,000 270,000 150,000 Depreciation Expense 50,000 10,000 Selling & Administrative Expense 230,000 60,000 Dividends Declared 225,000 30,000 Accumulated Depreciation 500,000 $ 30,000 Accounts Payable 75,000 35,000 Bonds Payable 150,000 85,000 Common Stock 500,000 200,000 Sales Retained Earnings Income from Snoopy Company 525,000 155,000 850,000 300,000 80,000 0 Total $2,680,000 $2,680,000 $805,000 $805,000 (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.) Answer is complete but not entirely correct. No A Event 1 General Journal Cash Investment in Snoopy Company B 2 Investment in Snoopy Company Income from Snoopy Company Debit Credit 30,000 30,000 80,000 80,000 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.) 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 Consolidated Financial Statements Worksheet December 31, 20X9 Consolidation Entries Peanut Co. Snoopy Co. DR CR Consolidated $ 0 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 $ 0 0 Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity $ 0 $ 0 $ 0 $ 0 $