Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $260,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $325,000. 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 Buildings and Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income from Snoopy Company Total Peanut Company Debit Credit $ 255,000 202,000 197,000 310,000 207,000 720,000 325,000 44,000 212,000 224,000 484,000 63,000 135,000 487,000 610,400 841,000 75,600 $2,696,000 $2,696,000 Snoopy Company Debit Credit $ 78,000 83,000 112,000 0 82,000 181,000 169,000 14,000 28,500 38,000 $ 42,000 42,000 64,500 192,000 139,000 306,000 $ 785,500 $785,500 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.) 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.) View transaction list Journal entry worksheet 1 2 > Record Peanut Co.'s share of Snoopy Co.'s 20x9 income. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet 1 2 Record Peanut Co.'s share of Snoopy Co.'s 20x9 dividend. Note: Enter debits before credits. EV General Journal Debit Credit 2 Record entry Clear entry View general journal 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 Net Income Less: Dividends declared Ending Balance Balance Sheet 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