Problem 3-27 (Algo) Consolidation Worksheet at End of the First Year of Ownership (Equity Method) LO 3-4, 3-5

Peanut Company acquired 90 percent of Snoopy Companys outstanding common stock for $315,000 on January 1, 20X8, when the book value of Snoopys net assets was equal to $350,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, follow:

	Peanut Company	Snoopy Company
Debit	Credit	Debit	Credit
Cash	$ 159,000		$ 86,000
Accounts Receivable	171,000		84,000
Inventory	213,000		80,000
Investment in Snoopy Company	359,100
Land	210,000		92,000
Buildings and Equipment	710,000		198,000
Cost of Goods Sold	186,000		125,000
Depreciation Expense	40,000		9,000
Selling & Administrative Expense	219,000		37,000
Dividends Declared	90,000		29,000
Accumulated Depreciation		$ 439,000		$ 18,000
Accounts Payable		58,000		43,000
Bonds Payable		186,000		80,000
Common Stock		497,000		196,000
Retained Earnings		311,900		154,000
Sales		795,000		249,000
Income from Snoopy Company		70,200		0
Total	$ 2,357,100	$ 2,357,100	$ 740,000	$ 740,000

Required:

Prepare any equity method entry(ies) related to the investment in Snoopy Company during 20X8.

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 208. Assume the company prepares the optional Accumulated Depreciation Consolidation Entry. 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. Required: . Prepare any equity method entry(ies) related to the investment in Snoopy Company during 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 Peanut Company's 90\% share of Snoopy Company's 20X8 income. Note: Enter debits before credits. Prepare any equity method entry(ies) related to the investment in Snoopy Company during 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 Peanut Company's 90\% share of Snoopy Company's 20X8 dividend. Note: Enter debits before credits