Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $280,000 on January 1,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $280,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $350,000. Peanut uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9: Cash Accounts Receivable. Inventory Investment in Snoopy Company Land Buildings and Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income from Snoopy Company Total View transaction list Journal entry worksheet < 1 2 Peanut Company Debit Note: Enter debits before credits. $ 259,000 203,000 193,000 335,000 203,000 715,000 350,000 44,000 227,000 210,000 $ 2,739,000 Record Peanut Company's share of Snoopy Company's 20X9 income. Credit Required: a. Prepare any equity method journal entry(ies) related to the investment in Snoopy Company during 20X9. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. $ 491,000 74,000 150,000 495,000 617,600 834,000 77,400 $ 2,739,000 Debit > Snoopy Company $92,000 97,000 102,000 0 92,000 188,000 157,000 17,000 39, 250 32,000 $ 816,250 Credit $ 51,000 51,000 50,250 200,000 154,000 310,000 0 $ 816,250 Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $280,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $350,000. Peanut uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9: Cash Accounts Receivable. Inventory Investment in Snoopy Company Land Buildings and Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income from Snoopy Company Total View transaction list Journal entry worksheet < 1 2 Peanut Company Debit Note: Enter debits before credits. $ 259,000 203,000 193,000 335,000 203,000 715,000 350,000 44,000 227,000 210,000 $ 2,739,000 Record Peanut Company's share of Snoopy Company's 20X9 income. Credit Required: a. Prepare any equity method journal entry(ies) related to the investment in Snoopy Company during 20X9. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. $ 491,000 74,000 150,000 495,000 617,600 834,000 77,400 $ 2,739,000 Debit > Snoopy Company $92,000 97,000 102,000 0 92,000 188,000 157,000 17,000 39, 250 32,000 $ 816,250 Credit $ 51,000 51,000 50,250 200,000 154,000 310,000 0 $ 816,250
Expert Answer:
Answer rating: 100% (QA)
To record Peanut Companys share of Snoopy Companys 20x9 income we need to us... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
Peanut Company acquired 100 percent of Snoopy Companys outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopys net assets was equal to $300,000. Problem 2-27...
-
Draw a situation in which a companys boss is aggressive and on the other hand an other companys boss is assertive in nature. What difference will be in output of employees working in both the...
-
A(n) ________ is a short-lived fashion. Relatively few people adopt this product, but it can spread quickly. Question content area bottom Part 1 A. fad B. creolization C. aspirational reference D....
-
MULTIPLE CHOICES 1. The innermost circle of the diversity wheel focuses on one's: a. Physical ability b. Personality c. Appearance d. Religion 2. According to Sue and Torrino (2005), what are the...
-
Venus is the brightest planet in the sky. How does its brightness compare with that of the brightest stars?
-
In order to be able to use industry benchmarks to evaluate a firms performance, it is necessary to determine the industry to which the firm belongs. Eurostat (European Statistical Office) is a...
-
Shonrock Co. sold $800,000, 9%, 10-year bonds on January 1, 2014. The bonds were dated January 1, and interest is paid on January 1 and July 1. The bonds were sold at 105. Instructions (a) Prepare...
-
6. 7. 8. If one of the diameters of the circle x + y-2x-6y+6=0 is a chord of another circle 'C', whose centre is at (2, 1), then its radius is Let Bi (i = 1, 2, 3) be three independent events in a...
-
SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 16 states listed in Table 5-5. There are four potential sites...
-
TestBank is a web - based bank that provides loans to students who need funds to pay for professional and trade certification examination fees. The bank currently has a loan portfolio of $ 1 0 0...
-
1. If it takes 50 J of energy to move 10 C of charge from point A to point B. what is the magnitude of the potential difference between points A and B? 2. Two long parallel wires carry currents of 20...
-
ELMI Corporation acquired a barn and three acres of land for a lump-sum price of $2,400,000. The barn contained used but fully-functional farming equipment. According to independent appraisals, the...
-
Ashleigh Batista is 42 years old and divorced. Her net income for 2023 is $84,400. She has retained the family home and custody of both children, who live with her. Her son is 23 years old, has no...
-
One of the 5 major tax issues associated with mergers, acquisitions and divestitures is whether the acquirer uses cash from newly issued equity or cash from retained earnings to purchase the target...
-
A taxpayer purchased used business equipment on November 20, 2016, for $100,000. The equipment was sold for $60,000 on August 25, 2018. Depreciation information is as follows: Accelerated...
-
How hard do people work when they are working for themselves? What determines how much they work? New England farmers owned their land. Use the Marxist circuit of capital language (e.g. C-M-C) to...
-
The landing gear of an aircraft with: mass of 2000 kg the spring-mass-damper system Consider that the runway surface is y(t) = 0.2 cos 157.08t stiffness of the spring is 5 x 105 N/m. What is the...
-
Able Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation...
-
Merchant Company had the following foreign currency transactions: 1. On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable was to be settled in European...
-
Sonoma Company has owned 100 percent of the outstanding common stock of Valencia Corporation, a Spanish subsidiary, for the past 15 years. The Spanish company's functional currency is the euro, and...
-
Identify something you own, perhaps even something you still use regularly. a. Give a list of at least six reasons why you might consider replacing the identified item. b. Identify at least two...
-
A company owns a 6-year-old gear hobber that has a book value of \($60,000.\) The present market value of the hobber is \($80,000.Anew\) gear hobber can be purchased for \($450,000.\) Using an...
-
Ten reasons why companies use equipment long after replacements would be justified economically. In many cases, these reasons do not apply just to companies; rather, they apply to us as individuals....
Study smarter with the SolutionInn App