Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $315,000 on January 1,...

 

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Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $315,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $315,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit $ 85,000 68,000 78,000 Peanut Company Debit $ 239,000 211,000 199,000 315,000 203,000 700,000 281,000 000 Credit Credit Cash Accounts Receivable Inventory Investment in Snoopy Company 80,000 189,000 133,000 11,000 42,000 23,000 Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared 244, 000 113,000 $ 450,000 61,000 193,000 492,000 570,000 785,000 23,000 $ 22,000 46,000 57,000 202,000 113,000 269,000 Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total $2,574, 000 $2,574,000 $709,000 $709, 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 other entries 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.) Answer is not complete. No Event General Journal Debit Credit Investment in Snoopy Company 315,000 A 1 Cash 315,000 Investment in Snoopy Company 315,000 8 Income from Snoopy Company 23,000 O Cash 239,000 8 Investment in Snoopy Company 315,000 O Answer is not complete. PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Snoopy Co. Peanut Co. DR CR Consolidated Income Statement Sales S 785,000 s 269,000 IS 1,054,000 Less: Cost of goods sold (281,000) (133,000) (414,000) Less: Depreciation expense (69,000) (11,000) (80,000) (42,000) O 23,000 8 s 106,000 Less: Selling & Administrative expense (244,000) (286,000) Dividend income 113,000 136,000 Net income IS 304,000 IS 410,000 Statement of Retained Earnings Beginning balance s 570,000 S 113,000 IS 683,000 Net income 304,000 106,000 410,000 Less: Dividends declared (113,000) (23,000) (136,000) Ending Balance s 761,000 $ 196,000 IS IS 957,000 Balance Sheet Assets Cash s 239,000 IS 85,000 S 324,000 Accounts receivable 211,000 68,000 279,000 Inventory 199,000 78,000 277,000 Investment in Snoopy Co. 315,000 315,000 Land 203,000 80,000 283,000 Buildings & Equipment 700,000 189,000 889,000 Less: Accumulated depreciation (450,000) (22,000) (472,000) Total Assets S 1,417,000 478,000 1,895,000 Liabilities & Equity Accounts payable IS 61,000 46,000 IS 107,000 Bonds payable 193,000 57,000 250,000 Common stock 492,000 202,000 694,000 Retained earnings 761,000 196,000 957,000 Total Liabilities & Equity S 1,507,000 IS 501,000 IS IS IS 2,008,000 Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $315,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $315,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit $ 85,000 68,000 78,000 Peanut Company Debit $ 239,000 211,000 199,000 315,000 203,000 700,000 281,000 000 Credit Credit Cash Accounts Receivable Inventory Investment in Snoopy Company 80,000 189,000 133,000 11,000 42,000 23,000 Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared 244, 000 113,000 $ 450,000 61,000 193,000 492,000 570,000 785,000 23,000 $ 22,000 46,000 57,000 202,000 113,000 269,000 Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total $2,574, 000 $2,574,000 $709,000 $709, 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 other entries 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.) Answer is not complete. No Event General Journal Debit Credit Investment in Snoopy Company 315,000 A 1 Cash 315,000 Investment in Snoopy Company 315,000 8 Income from Snoopy Company 23,000 O Cash 239,000 8 Investment in Snoopy Company 315,000 O Answer is not complete. PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Snoopy Co. Peanut Co. DR CR Consolidated Income Statement Sales S 785,000 s 269,000 IS 1,054,000 Less: Cost of goods sold (281,000) (133,000) (414,000) Less: Depreciation expense (69,000) (11,000) (80,000) (42,000) O 23,000 8 s 106,000 Less: Selling & Administrative expense (244,000) (286,000) Dividend income 113,000 136,000 Net income IS 304,000 IS 410,000 Statement of Retained Earnings Beginning balance s 570,000 S 113,000 IS 683,000 Net income 304,000 106,000 410,000 Less: Dividends declared (113,000) (23,000) (136,000) Ending Balance s 761,000 $ 196,000 IS IS 957,000 Balance Sheet Assets Cash s 239,000 IS 85,000 S 324,000 Accounts receivable 211,000 68,000 279,000 Inventory 199,000 78,000 277,000 Investment in Snoopy Co. 315,000 315,000 Land 203,000 80,000 283,000 Buildings & Equipment 700,000 189,000 889,000 Less: Accumulated depreciation (450,000) (22,000) (472,000) Total Assets S 1,417,000 478,000 1,895,000 Liabilities & Equity Accounts payable IS 61,000 46,000 IS 107,000 Bonds payable 193,000 57,000 250,000 Common stock 492,000 202,000 694,000 Retained earnings 761,000 196,000 957,000 Total Liabilities & Equity S 1,507,000 IS 501,000 IS IS IS 2,008,000 Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $315,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $315,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit $ 85,000 68,000 78,000 Peanut Company Debit $ 239,000 211,000 199,000 315,000 203,000 700,000 281,000 000 Credit Credit Cash Accounts Receivable Inventory Investment in Snoopy Company 80,000 189,000 133,000 11,000 42,000 23,000 Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared 244, 000 113,000 $ 450,000 61,000 193,000 492,000 570,000 785,000 23,000 $ 22,000 46,000 57,000 202,000 113,000 269,000 Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total $2,574, 000 $2,574,000 $709,000 $709, 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 other entries 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.) Answer is not complete. No Event General Journal Debit Credit Investment in Snoopy Company 315,000 A 1 Cash 315,000 Investment in Snoopy Company 315,000 8 Income from Snoopy Company 23,000 O Cash 239,000 8 Investment in Snoopy Company 315,000 O Answer is not complete. PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Snoopy Co. Peanut Co. DR CR Consolidated Income Statement Sales S 785,000 s 269,000 IS 1,054,000 Less: Cost of goods sold (281,000) (133,000) (414,000) Less: Depreciation expense (69,000) (11,000) (80,000) (42,000) O 23,000 8 s 106,000 Less: Selling & Administrative expense (244,000) (286,000) Dividend income 113,000 136,000 Net income IS 304,000 IS 410,000 Statement of Retained Earnings Beginning balance s 570,000 S 113,000 IS 683,000 Net income 304,000 106,000 410,000 Less: Dividends declared (113,000) (23,000) (136,000) Ending Balance s 761,000 $ 196,000 IS IS 957,000 Balance Sheet Assets Cash s 239,000 IS 85,000 S 324,000 Accounts receivable 211,000 68,000 279,000 Inventory 199,000 78,000 277,000 Investment in Snoopy Co. 315,000 315,000 Land 203,000 80,000 283,000 Buildings & Equipment 700,000 189,000 889,000 Less: Accumulated depreciation (450,000) (22,000) (472,000) Total Assets S 1,417,000 478,000 1,895,000 Liabilities & Equity Accounts payable IS 61,000 46,000 IS 107,000 Bonds payable 193,000 57,000 250,000 Common stock 492,000 202,000 694,000 Retained earnings 761,000 196,000 957,000 Total Liabilities & Equity S 1,507,000 IS 501,000 IS IS IS 2,008,000 Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $315,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $315,000. Peanut chooses to carry the investment in Snoopy at cost because the investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit $ 85,000 68,000 78,000 Peanut Company Debit $ 239,000 211,000 199,000 315,000 203,000 700,000 281,000 000 Credit Credit Cash Accounts Receivable Inventory Investment in Snoopy Company 80,000 189,000 133,000 11,000 42,000 23,000 Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared 244, 000 113,000 $ 450,000 61,000 193,000 492,000 570,000 785,000 23,000 $ 22,000 46,000 57,000 202,000 113,000 269,000 Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total $2,574, 000 $2,574,000 $709,000 $709, 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 other entries 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.) Answer is not complete. No Event General Journal Debit Credit Investment in Snoopy Company 315,000 A 1 Cash 315,000 Investment in Snoopy Company 315,000 8 Income from Snoopy Company 23,000 O Cash 239,000 8 Investment in Snoopy Company 315,000 O Answer is not complete. PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Snoopy Co. Peanut Co. DR CR Consolidated Income Statement Sales S 785,000 s 269,000 IS 1,054,000 Less: Cost of goods sold (281,000) (133,000) (414,000) Less: Depreciation expense (69,000) (11,000) (80,000) (42,000) O 23,000 8 s 106,000 Less: Selling & Administrative expense (244,000) (286,000) Dividend income 113,000 136,000 Net income IS 304,000 IS 410,000 Statement of Retained Earnings Beginning balance s 570,000 S 113,000 IS 683,000 Net income 304,000 106,000 410,000 Less: Dividends declared (113,000) (23,000) (136,000) Ending Balance s 761,000 $ 196,000 IS IS 957,000 Balance Sheet Assets Cash s 239,000 IS 85,000 S 324,000 Accounts receivable 211,000 68,000 279,000 Inventory 199,000 78,000 277,000 Investment in Snoopy Co. 315,000 315,000 Land 203,000 80,000 283,000 Buildings & Equipment 700,000 189,000 889,000 Less: Accumulated depreciation (450,000) (22,000) (472,000) Total Assets S 1,417,000 478,000 1,895,000 Liabilities & Equity Accounts payable IS 61,000 46,000 IS 107,000 Bonds payable 193,000 57,000 250,000 Common stock 492,000 202,000 694,000 Retained earnings 761,000 196,000 957,000 Total Liabilities & Equity S 1,507,000 IS 501,000 IS IS IS 2,008,000

Answer rating: 100% (QA)

Part A Event General journal Debit Credit 1 Investment in Snoopy Co 315000 Cash 315000 To record the ... View the full answer