Question
Please assist me in getting the Beginning Balance in Retained Earnings in the Consolidation entry. I tried adding an screenshot but it did not let
Please assist me in getting the Beginning Balance in Retained Earnings in the Consolidation entry. I tried adding an screenshot but it did not let me
Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $304,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $304,000. Accumulated depreciation on this date was $11,000.Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9:
Peanut CompanySnoopy CompanyDebitCreditDebitCreditCash$245,000$92,000Accounts Receivable196,00080,000Inventory195,000112,000Investment in Snoopy Company304,0000Land205,000116,000Buildings & Equipment707,000214,000Cost of Goods Sold286,000143,000Depreciation Expense68,00011,000Selling & Administrative Expense239,00075,000Dividends Declared231,00031,000Accumulated Depreciation$516,000$33,000Accounts Payable74,00023,000Bonds Payable138,00074,000Common Stock493,000187,000Retained Earnings592,000258,000Sales832,000299,000Dividend Income31,0000Total$2,676,000$2,676,000$874,000$874,000
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