work Chapter 2 Drowser F%252Fnewconnect.mh Saved Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $317,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $317,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit Credit Peanut Company Debit Credit Inventory Cash Accounts Receivable Investment in Snoopy Company $ 133,000 185,000 216,000 $ 83,000 81,000 87,000 343,000 0 res Land Buildings & Equipment 200,000 87,000 702,000 199,000 Cost of Goods Sold 205,000 127,000 Depreciation Expense 65,000 12,000 Selling & Administrative Expense 240,000 49,000 Dividends Declared Accounts Payable 100,000 37,000 Accumulated Depreciation. $ 443,000 $ 24,000 67,000 52,000 Bonds Payable 197,000 118,000 Common Stock 484,000 203,000 Retained Earnings Sales 345,000 114,000 790,000 251,000 Income from Snoopy Company Total 63,000 0 $2,389,000 $2,399,000 $762,000 $762,000 (Assume the company prepares the optional Accumulated Depreciation Elimination Entry) Required: a. Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any normal 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.) < Prev 6 of 6 Next