Peanut Company acquired 100 percent of Snoopy Company s outstanding common
Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the cost method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:

a. Prepare the journal entries on Peanut’s books for the acquisition of Snoopy on January 1, 20X8 as well as any normal cost method entry(ies) related to the investment in Snoopy Company during 20X8.
b. Prepare a consolidation worksheet for 20X8 in goodform.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help