Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $312,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $312,000. 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 $ 147, 000 $ 73, 000 Accounts Receivable 183, 090 79, 000 Inventory 215, 090 80, 000 Investment in Snoopy Company 367 , 090 Land 210, 060 81, 000 Buildings & Equipment 715, 090 193,606 Cost of Goods Sold 202, 090 131, 000 Depreciation Expense 67, 090 13, 000 Selling & Administrative Expense 242,000 46, 000 Dividends Declared 110, 090 25, 000 Accumulated Depreciation $ 448,000 $ 26,000 Accounts Payable 61, 060 46, 000 Bonds Payable 188, 000 67, 000 Common Stock 490, 060 218, 000 Retained Earnings 406,000 94, 006 Sales 785, 000 270,000 Income from Snoopy Company 80, 000 Total $2, 458, 000 $2, 458,000 $721, 000 $721, 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.) x Answer is not complete. No Event General Journal Debit Credit A 1 Investment in Snoopy Company 304,000 X Cash 304,000 X B 2 Cash X 29,000 x Investment in Snoopy Company x 29,000 xincome Statement Sales 796,000 * $ 260,000 x 5 1,056,000 Less: Cost of goods sold (289,000) x (141,000) x (430,000) Less: Depreciation expense (66,000) x (13,000) (79,000 Less: Selling & Administrative expense (233,000) x (40,000) x (273,000) Income from Snoopy Co. 29,000 x 29,000 x 0 Net income 237,000 $ 66,000 29.000 S 0 274,000 Statement of Retained Earnings Beginning balance 525,000 x $ 95,000 x $ 95,000 x S 525,000 Net income 237,000 66,000 29,000 274,000 Less: Dividends declared (103,000) x (29,000) x 29,000 x (103,000 Ending Balance $ 659,000 $ 132,000 $ 124,000 29,000 S 696,000 Balance Sheet Assets Cash $ 231,000 * $ 76,000 x S 307,000 Accounts receivable 197,000 x 81,000 x 278,000 Inventory 192,000 x 83,000 x 275,000 Investment in Snoopy Co. 304,000 x 304,000 x Land 210,000 92,000 x 302,000 Buildings & Equipment 701,000 X 198,000 x 13,000 886,000 Less: Accumulated depreciation (441,000) X (26,000) 13,000 (454,000) Total Assets $ 1,394,000 504,000 $ 13,000 $ 317,000 S 1,594,000 Liabilities & Equity Accounts payable 56,000 x $ 41,000 x 97,000 Bonds payable 191,000 x 122,000 x 313,000 Common stock 488,000 x 209,000 x 209,000 x 488,000 Retained earnings 659,000 132,000 124,000 29,000 696,000 Total Liabilities & Equity $ 1,394,000 $ 504,000 $ 333,000 S 29,000 S 1,594,000