Peanut Company acquired 100 percent of Snoopy Companys outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopys 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, 20X9:

	Peanut Company										Snoopy Company
	Debit					Credit					Debit					Credit
Cash		$	230,000									$	75,000
Accounts Receivable			190,000										80,000
Inventory			180,000										100,000
Investment in Snoopy Company			405,000										0
Land			200,000										100,000
Buildings & Equipment			700,000										200,000
Cost of Goods Sold			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
Retained Earnings								525,000										155,000
Sales								850,000										300,000
Income from Snoopy Company								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.) 1. Record Peanut Co's 100% share of Snoopy Co's 20x9 income

2. Record Peanut Co's 100% share of Snoopy Co's 20x9 dividend

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.)

PEANUT COMPANY AND SUBSIDIARY Consolidated Financial State ments Worksheet December 31, 20X9 Consolidation Entries Peanut Co. Snoopy Co. CR Consolidated DR Income Statement Sales Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Income from Snoopy Co. Net income S C C 0 S5 C 0 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared S Ending Balance 0 Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Co. Land Buildings & Equipment Less: Accumulated depreciation S Total Assets C 0 Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity $ $ 0 0 0 PEANUT COMPANY AND SUBSIDIARY Consolidated Financial State ments Worksheet December 31, 20X9 Consolidation Entries Peanut Co. Snoopy Co. CR Consolidated DR Income Statement Sales Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Income from Snoopy Co. Net income S C C 0 S5 C 0 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared S Ending Balance 0 Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Co. Land Buildings & Equipment Less: Accumulated depreciation S Total Assets C 0 Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity $ $ 0 0 0