Problem $3-28($Static$)$ Consolidation Worksheet at End of the Second Year of Ownership $($Equity Method$)$ LO $3-4,3-5$

Peanut Company acquired $90$ percent of Snoopy Company$$s outstanding common stock for $$270,000$ on January $1,20$X$8,$ when the book value of Snoopy$$s net assets was equal to $$300,000.$ 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 $31,20$X$9$:

Peanut Company Snoopy Company

Debit Credit Debit Credit

Cash $ $255,000$ $ $75,000$

Accounts Receivable $190,00080,000$

Inventory $180,000100,000$

Investment in Snoopy Company $364,5000$

Land $200,000100,000$

Buildings and Equipment $700,000200,000$

Cost of Goods Sold $270,000150,000$

Depreciation Expense $50,00010,000$

Selling & Administrative Expense $230,00060,000$

Dividends Declared $225,00030,000$

Accumulated Depreciation $ $500,000$ $ $30,000$

Accounts Payable $75,00035,000$

Bonds Payable $150,00085,000$

Common Stock $500,000200,000$

Retained Earnings $517,500155,000$

Sales $850,000300,000$

Income from Snoopy Company $72,0000$

Total $ $2,664,500$ $ $2,664,500$ $ $805,000$ $ $805,000$

Required:

Prepare any equity method journal entry$($ies$)$ related to the investment in Snoopy Company during $20$X$9.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Prepare a consolidation worksheet for $20$X$9.$ Assume the company prepares the optional Accumulated Depreciation Consolidation Entry and that the depreciation expense was the same amount in both $20$X$8$ and $20$X$9.$

Note: 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.