Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $300,000 on January 1, 20x8, when the book value of Snoopy's net assets was equal to $375,000. 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. Cash Accounts Receivable Inventory Investment in Snoopy Company Land thuildings and Equipment Cost of Goods Sold Depreciation Expense Selling to Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Incone tron Snoopy Company Total Peanut Company Debit Credit $ 258,000 208,000 196,000 313,800 215,000 713,000 375,000 42.000 210,000 214.000 $ 498,000 57,000 148.000 490,000 640,000 838,000 73,800 $2,744,800 $2,744.800 Snoopy Company Debit Credit $ 93,000 98,000 101,000 0 94,000 199,000 154,000 15,000 50, 750 49,000 $ 45,000 45,000 102,750 199,000 150,000 312,000 0 $853,750 $853,750 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.) b. Prepare a consolidation worksheet for 20X9. Assume the company prepares the optional Accumulated Depreciation Consolidation Entry and that the depreciation expense was the same amount in both 20X8 and 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.) Consolidated PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet January 1, 20X9 Consolidation Entries Peanut Co. Snoopy Co. DR CR Income Statement Sales Less: COGS Less: Depreciation expense Less: Selling & Administrative Expense Income from Snoopy Co Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Not Income Less: Dividends declared Ending Balance Balance Sheet Assets Statement of Retained Earnings Beginning balance Net Income Less: Dividends declared Ending Balance Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Co. Land Buildings and equipment Accumulated depreciation Total Assets Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Retained earnings NCI IN NA of Snoopy Co Total Liabilities & Stockholders' Equity