Q3. Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $305,000 on January...

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Q3. Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $305,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $305,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Peanut Company Snoopy Company Debit Credit Cash $146,000 Accounts Receivable 181,000 Debit $ 74,000 71,000 Credit Inventory 214,000 93,000 Investment in Snoopy Company 329,000 0 Land 203,000 92,000 Buildings and Equipment 703,000 183,000 Cost of Goods Sold 217,000 141,000 Depreciation Expense 69,000 14,000 Selling and Administrative Expense 234,000 51,000 Dividends Declared 101,000 26,000 Accumulated Depreciation Accounts Payable $432,000 59,000 $ 28,000 44,000 Bonds Payable 200,000 112,000 Common Stock 491,000 206,000 Retained Earnings 381,000 99,000 Sales 784,000 Income from Snoopy Company 50,000 256,000 0 Total $2,397,000 $2,397,000 $ 745,000 $ 745,000 (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 normal equity method entry(ies) related to the investment in Snoopy Company during 20X8. b. Prepare a consolidation worksheet for 20X8. Q3. Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $305,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $305,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Peanut Company Snoopy Company Debit Credit Cash $146,000 Accounts Receivable 181,000 Debit $ 74,000 71,000 Credit Inventory 214,000 93,000 Investment in Snoopy Company 329,000 0 Land 203,000 92,000 Buildings and Equipment 703,000 183,000 Cost of Goods Sold 217,000 141,000 Depreciation Expense 69,000 14,000 Selling and Administrative Expense 234,000 51,000 Dividends Declared 101,000 26,000 Accumulated Depreciation Accounts Payable $432,000 59,000 $ 28,000 44,000 Bonds Payable 200,000 112,000 Common Stock 491,000 206,000 Retained Earnings 381,000 99,000 Sales 784,000 Income from Snoopy Company 50,000 256,000 0 Total $2,397,000 $2,397,000 $ 745,000 $ 745,000 (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 normal equity method entry(ies) related to the investment in Snoopy Company during 20X8. b. Prepare a consolidation worksheet for 20X8.