Peanut Company acquired 100 percent of Snoopy Companys outstanding common stock for $300,000 on January 1, 20X8,

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 equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:

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.

b. Prepare a consolidation worksheet for 20X8 in goodform.

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Peanut Company Snoopy Company Credit Credit 5 Accounts Receivable Investment in Snoopy Stock Buildings & Equipment 8 Cost of Goods Sold Dividends Declared 2 2 $2,325,000 2 $715,000