Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $276,800 on January 1,...

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Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $276,800 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $346,000. Peanut uses the equity method to account for Investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, follow: Assets Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings and Equipment Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Peanut Company Snoopy Company $ 57,000 $ 24,000 52,000 34,000 116,000 67,000 276,800 228,000 712,000 (389,000) $ 1,052,800 $ 75,000 185,000 493,000 299,800 114,000 212,000 (9,000) $ 442,000 $ 21,000 75,000 185,000 161,000 Total Liabilities and Equity $ 1,052,800 $ 442,000 Required: a. Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 20X8. b. Prepare a consolidation worksheet on the acquisition date, January 1, 20X8. c. Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a consolidation worksheet on the acquisition date, January 1, 20X8. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Company Land Buildings and equipment PEANUT COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet 1/1/20X8 Peanut Company Snoopy Company Consolidation Entries Consolidated Debit Credit Accumulated depreciation Total Assets $ 0 S 0 $ 0 S 0 S 0 Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Retained earnings Noncontrolling interest in net assets of Snoopy Company Total Liabilities & Stockholders' Equity S S $ S S Show less A Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $276,800 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $346,000. Peanut uses the equity method to account for Investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, follow: Assets Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings and Equipment Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Peanut Company Snoopy Company $ 57,000 $ 24,000 52,000 34,000 116,000 67,000 276,800 228,000 712,000 (389,000) $ 1,052,800 $ 75,000 185,000 493,000 299,800 114,000 212,000 (9,000) $ 442,000 $ 21,000 75,000 185,000 161,000 Total Liabilities and Equity $ 1,052,800 $ 442,000 Required: a. Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 20X8. b. Prepare a consolidation worksheet on the acquisition date, January 1, 20X8. c. Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a consolidation worksheet on the acquisition date, January 1, 20X8. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Company Land Buildings and equipment PEANUT COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet 1/1/20X8 Peanut Company Snoopy Company Consolidation Entries Consolidated Debit Credit Accumulated depreciation Total Assets $ 0 S 0 $ 0 S 0 S 0 Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Retained earnings Noncontrolling interest in net assets of Snoopy Company Total Liabilities & Stockholders' Equity S S $ S S Show less A

Answer rating: 100% (QA)

Required A Consolidation Worksheet on January 1 20X8 PEANUT COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet January 1 20X8 Balance Sheet A... View the full answer