Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $313,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $313,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:

Peanut Company Snoopy Company

Debit Credit Debit Credit

Cash $244,000 $88,000

Accounts Receivable 202,000 78,000

Inventory 181,000 76,000

Investment in Snoopy Company 313,000 0

Land 204,000 81,000

Buildings & Equipment 705,000 188,000

Cost of Goods Sold 285,000 139,000

Depreciation Expense 60,000 15,000

Selling & Administrative Expense 243,000 55,000

Dividends Declared 117,000 39,000

Accumulated Depreciation $449,000 $30,000

Accounts Payable 71,000 56,000

Bonds Payable 180,000 97,000

Common Stock 490,000 213,000

Retained Earnings 533,000 100,000

Sales 792,000 263,000

Dividend Income 39,000 0

Total $2,554,000 $2,554,000 $759,000 $759,000

(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 other entries 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.)

b. Prepare the 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.)