Peanut Company acquired 90 percent of Snoopy Companys outstanding common stock for $270,000 on January 1, 20X8,

Peanut Company acquired 90 percent of Snoopy Company’s outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, are as follows:

Required
a. Prepare the journal entry on Peanut’s books for the acquisition of Snoopy on January 1, 20X8.
b. Prepare a consolidation worksheet on the acquisition date, January 1, 20X8, in good form.
c. Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8, in goodform.

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Snoopy Peanut Company Company Accounts Receivable Inventory Investment in Snoopy Stock 50,000 100,000 270,000 55,000 20,000 30,000 60,000 225,000 100,000 700,000 200,000 (400,000) (10,000) 1,000,000 400,000 Buildings & Equipment Accumulated Depreciation Total Assets Liabilities & Stockholders Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Equity 5,000 25,000 200,000 75,000 500,000 200,000 225,000 100,000 1,000,000 400,000