Peanut Company acquired 100 percent of Snoopy Companys outstanding common stock for $310,000 on January 1, 20X8, when the book value of Snoopys net assets was equal to $310,000. Accumulated depreciation on this date was $18,000. 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:

	Peanut Company							Snoopy Company
	Debit			Credit				Debit			Credit
Cash	$	230,000						$	78,000
Accounts Receivable		207,000							97,000
Inventory		184,000							119,000
Investment in Snoopy Company		310,000							0
Land		216,000							107,000
Buildings & Equipment		711,000							212,000
Cost of Goods Sold		289,000							146,000
Depreciation Expense		63,000							18,000
Selling & Administrative Expense		235,000							71,000
Dividends Declared		237,000							38,000
Accumulated Depreciation				$	511,000						$	54,000
Accounts Payable					60,000							21,000
Bonds Payable					139,000							67,000
Common Stock					482,000							196,000
Retained Earnings					604,000							267,000
Sales					848,000							281,000
Dividend Income					38,000							0
Total	$	2,682,000		$	2,682,000			$	886,000		$	886,000

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.)

Beginning balance Debit?

Income Statement Sales Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Dividend income Net income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X9 Peanut Co. Snoopy Co. $ 848,000 $ 281,000 (289,000) (146,000) (63,000) (18,000) (235,000) (71,000) 38,000 38,000 $ 299,000 $ 46,000 $ 38,000 $ 604,000 $ 267,000 $ 275,000 38,000 299,000 46,000 (237,000) (38,000) 666,000 $ 275,000 $ 313,000 $ Consolidation Entries DR CR $ 0 Consolidated $ 1,129,000 (435,000) (81,000) (306,000) 0 307,000 596,000 307,000 (237,000) 666,000 $ $ 38,000 $ 38,000 $ 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 Common stock Retained earnings Total Liabilities & Equity $ 230,000 207,000 184,000 310,000 216,000 711,000 (511,000) $ 1,347,000 $ 60,000 139,000 482,000 666,000 $ 1,347,000 $ A A 78,000 97,000 119,000 0 107,000 212,000 (54,000) 18,000 559,000 $ 18,000 $ 21,000 67,000 196,000 196,000 275,000 313,000 $ 559,000 $ 509,000 $ 310,000 18,000 328,000 38,000 38,000 A $ $ 308,000 304,000 303,000 0 323,000 905,000 (547,000) 1,596,000 81,000 206,000 482,000 666,000 1,435,000