Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $315,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $315,000. 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 85,000 68,000 78,000 Debit Credit Credit 239,000 211,000 199,000 315,000 203,000 700,000 281,000 69,000 244,000 113,000 Cash Accounts Receivable Inventory Investment in Snoopy Company 80,000 189,000 133,000 11,000 42,000 23,000 Land Buildings & Equipment Cost of Goods Sold Depreciation Selling & Administrative Expense Dividends Declared $ 450,000 $ 22,000 46,000 57,000 202,000 113,000 269,000 Accumulated Depreciation Accounts Payable Bonds Payable 61,000 193,000 492,000 570,000 785,000 23,000 Common Stock Retained Earnings Sales Dividend Income $2,574,000 $2,574,000 $709,000 $709,000 Total (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.) Answer is not complete. General Journal No Event Debit Credit Investment in Snoopy Company A 315,000 Cash 315,000 Investment in Snoopy Company 315,000 Income from Snoopy Company 23,000 239,000 Cash Investment in Snoopy Company 315,000 Answer is not complete. PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Snoopy Co. Consolidated Peanut Co. DR CR Income Statement Sales 785,000 S 269,000 1,054,000 Less: Cost of goods sold (281,000) (133,000) (414,000) Less: Depreciation expense (80,000) (69,000) (11,000) (244,000) Less: Selling & Administrative expense (42,000) (286,000) Dividend income 113,000 136,000 23,000 304,000 106,000 S 0 410,000 Net income Statement of Retained Earnings 683,000 Beginning balance 570,000 113,000 410,000 Net income 304,000 106,000 Less: Dividends declared (113,000) (23,000) (136,000) 761,000 957,000 196,000 0 0 Ending Balance Balance Sheet Assets Cash 239,000 85,000 324,000 Accounts receivable 211,000 68,000 279,000 Inventory 78,000 199,000 277,000 Investment in Snoopy Co. 315,000 315,000 Land 203,000 80,000 283,000 889,000 Buildings & Equipment 700,000 189,000 Less: Accumulated depreciation (450,000) (22,000) (472,000) $ 1,417,000 478,000 S S 1,895,000 Total Assets Liabilities & Equity Accounts payable S 61,000 46,000 107,000 Bonds payable 193,000 57,000 250,000 492,000 202,000 Common stock 694,000 Retained earnings 761,000 957,000 196,000 $ 1,507,000 501,000 2,008,000 0 Total Liabilities & Equity