Peanut Company acquired $80$ percent of Snoopy Company$$s outstanding common stock for $$269,600$ on January $1,20$X$8,$ when the book value of Snoopy$$s net assets was equal to $$337,000.$ Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January $1,20$X$8,$ follow:

Peanut Company Snoopy Company

Assets

Cash $ $72,000$ $ $22,000$

Accounts Receivable $67,00032,000$

Inventory $114,00060,000$

Investment in Snoopy Company $269,600$

Land $235,000102,000$

Buildings and Equipment $714,000206,000$

Accumulated Depreciation $(389,000)(7,000)$

Total Assets $ $1,082,600$ $ $415,000$

Liabilities and Stockholders$$ Equity

Accounts Payable $ $58,000$ $ $20,000$

Bonds Payable $186,00058,000$

Common Stock $481,000186,000$

Retained Earnings $357,600151,000$

Total Liabilities and Equity $ $1,082,600$ $ $415,000$

Required:

Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January $1,20$X$8.$

Prepare a consolidation worksheet on the acquisition date, January $1,20$X$8.$

Prepare a consolidated balance sheet on the acquisition date, January $1,20$X$8.$

Answer rating: 100% (QA)

1 Journal Entry on Peanuts Books for the Acquisition of Snoopy on January 1 2X8 Investment in Snoopy ... View the full answer