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 Snoopy Company Debit Credit Debit Credit Cash $ 142,000 $ 78,000 Accounts Receivable 175,000 70,000 Inventory 219,000 81,000 Investment in Snoopy Company 307,000 0 Land 208,000 97,000 Buildings & Equipment 705,000 199,000 Cost of Goods Sold 215,000 144,000 Depreciation Expense 62,000 20,000 Selling & Administrative Expense 241,000 58,000 Dividends Declared 113,000 34,000 Accumulated Depreciation $ 431,000 $ 40,000 Accounts Payable 74,000 59,000 Bonds Payable 188,000 119,000 Common Stock 483,000 217,000 Retained Earnings 394,000 93,000 Sales 786,000 253,000 Income from Snoopy Company 31,000 0 Total $ 2,387,000 $ 2,387,000 $ 781,000 $ 781,000

(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.)

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.)