Problem 3-26 (Algo) Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method) LO 3-4, 3-5

Peanut Company acquired 80 percent of Snoopy Companys outstanding common stock for $285,600 on January 1, 20X8, when the book value of Snoopys net assets was equal to $357,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, follow:

	Peanut Company	Snoopy Company
Assets
Cash	$ 62,000	$ 25,000
Accounts Receivable	57,000	35,000
Inventory	111,000	79,000
Investment in Snoopy Company	285,600
Land	241,000	114,000
Buildings and Equipment	702,000	203,000
Accumulated Depreciation	(389,000)	(7,000)
Total Assets	$ 1,069,600	$ 449,000
Liabilities and Stockholders Equity
Accounts Payable	$ 73,000	$ 19,000
Bonds Payable	200,000	73,000
Common Stock	484,000	200,000
Retained Earnings	312,600	157,000
Total Liabilities and Equity	$ 1,069,600	$ 449,000

Required:

Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 20X8.

Prepare a consolidation worksheet on the acquisition date, January 1, 20X8.

Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8.

Complete this question by entering your answers in the tabs below. Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 208. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the initial investment in Snoopy Company Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare a consolidated balance sheet on the acquisition date, January 1, 208. Amounts to be deducted should be indicated by a minus sign. Complete this question by entering your answers in the tabs below. Prepare a consolidation worksheet on the acquisition date, January 1, 208. 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