Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $280,800 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $312,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, follow: 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 $ 167,000 Snoopy Company Debit $ 75,000 Credit 182,000 211,000 81,000 75,000 328,500 204,000 97,000 706,000 184,000 190,000 123,000 44,000 9,000 218,000 20,000 88,000 32,000 440,000 70,000 $ 18,000 55,000 198,000 80,000 494,000 197,000 259,000 115,000 795,000 237,000 76,500 0 $2,332,500 $2,332,500 $702,000 $702,000 Required: a. Prepare any 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.) View transaction list Journal entry worksheet 1 2 3 Record the initial investment in Snoopy Co. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal > Required: a. Prepare any 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.) View transaction list Journal entry worksheet 1 2 3 Record Peanut Co.'s 90% share of Snoopy Co.'s 20X8 income. Note: Enter debits before credits. Event 2 General Journal Debit Credit Record entry Clear entry View general journal > Required: a. Prepare any 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.) View transaction list Journal entry worksheet 1 2 3 Record Peanut Co.'s 90% share of Snoopy Co.'s 20X8 dividend. Note: Enter debits before credits. Event 3 General Journal Debit Credit Record entry Clear entry View general journal > b. Prepare a consolidation worksheet for 20X8. Assume the company prepares the optional Accumulated Depreciation Consolidation Entry. (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.) Income Statement Sales Less: COGS Less: Depreciation expense PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet 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 December 31, 20X8 Consolidation Entries Peanut Co. Snoopy Co. DR CR Consolidated 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