$P3-28$ Consolidation Worksheet $at$ End $of$ the Second Year $of$ Ownership $(Equity$ Method$)$

Peanut Company acquired $90$ percent $of$ Snoopy Company's outstanding common stock for

$$270,000on$ January $1,20X8,$ when the book value $of$ Snoopy's net assets was equal $to$ $$300,000.$

Problem $3-27$ summarizes the first year $of$ Peanut's ownership $of$ Snoopy. Peanut uses the equity

method $to$ account for investments. The following trial balance summarizes the financial position

and operations for Peanut and Snoopy $asof$ December $31,20X9$: Required

$a.$ Prepare any equity$-$method journal entry$(ies)$ related $to$ the investment $in$ Snoopy Company

during $20X9.$

$b.$ Prepare a consolidation worksheet for $20X9in$ good form.