A6 Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $314,000 on January 1, 20Xbook value of Snoopy's net assets was equal to $314,000. Peanut chooses to carry the investment in Snoopy at cost becainvestment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:CashAccounts ReceivableInventoryInvestment in Snoopy CompanyLandBuildings and EquipmentCost of Goods SoldDepreciation ExpenseSelling and Administrative ExpenseDividends DeclaredAccumulated DepreciationAccounts PayableBonds PayableCommon StockRetained EarningsSalesDividend IncomeTotalRequired A Required BView transaction listPeanut CompanyJournal entry worksheetDebit$ 235,000203,000187,000314,000211,000714,000277,00070,000A237,000111,000B$ 2,559,000Credit$ 435,00059,000198,000(Assume the company prepares the optional Accumulated Depreciation Elimination Entry.)Required:495,000559,000780,00033,000$ 2,559,000Snoopy CompanyDebit$ 71,00074,00093,000088,000185,000144,000a. Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any other erto the investment in Snoopy Company during 20X8.b. Prepare a consolidation worksheet for 20X8.Complete this question by entering your answers in the tabs below.14,00052,00033,000$ 754,000Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any other entriesthe investment in Snoopy Company during 20X8.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Record Peanut Company's 100% share of Snoopy Company's 20X8 dividend.Credit$ 28,00044,000104,000216,00098,000264,0000$ 754,000

Name: A6 Peanut Company acquired 100 percent of Snoopy Company's outstanding
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Description: A6 Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $314,000 on January 1, 20Xbook value of Snoopy's net assets was equal to $314,000. Peanut chooses to carry the investment in Snoopy at cost becainvestment will be

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(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 other e to the investment in Snoopy Company during 20X8. b. Prepare a consolidation worksheet for 20X8.

(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 other e to the investment in Snoopy Company during 20X8. b. Prepare a consolidation worksheet for 20X8.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $317,700 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $353,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, follow: 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 Peanut Company Debit $ 171,000 170,000 220,000 360,000 206,000 717,000 191,000 48,000 210,000 96,000 $ 2,389,000 Credit $ 435,000 60,000 187,000 480,000 360,100 794,000 72,900 $ 2,389,000 Debit Snoopy Company $ 90,000 69,000 89,000 89,000 192,000 105,000 8,000 48,000 34,000 $724,000 Credit $ 16,000 45,000 68,000 181,000 172,000 242,000 0 $724,000 Required: a. Prepare any…
Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $260,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $325,000. 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 Peanut Company Debit $ 264,000 204,000 184,000 325,600 213,000 719,000 325,000 42,000 214,000 214,000 $ 2,704,600 Credit $ 491,000 59,000 131,000 499,000 609,400 836,000 79,200 $ 2,704,600 Debit Snoopy Company $ 82,000 87,000 102,000 0 88,000 195,000 161,000 15,000 38,000 33,000 $ 801,000 Required: a. Prepare any equity method…
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Paper Company acquired 80 percent of Scissor Company’s outstanding common stock for $296,000 on January 1, 20X8, when the book value of Scissor’s net assets was equal to $370,000. Paper uses the equity method to account for investments. Trial balance data for Paper and Scissor as of December 31, 20X8, are as follows: Paper Company Scissor Company Debit Credit Debit Credit Cash $ 191,000 $ 46,000 Accounts Receivable 140,000 60,000 Inventory 190,000 120,000 Investment in Scissor Company 350,400 0 Land 250,000 125,000 Buildings and Equipment 875,000 250,000 Cost of Goods Sold 250,000 155,000 Depreciation Expense 65,000 12,000 Selling & Administrative Expense 280,000 50,000 Dividends Declared 80,000 25,000 Accumulated Depreciation $ 565,000 $ 36,000 Accounts Payable 77,000 27,000 Bonds Payable 250,000 100,000 Common Stock 625,000 250,000 Retained Earnings 280,000 120,000 Sales 800,000…
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Peanut Company acquired 80 percent of Snoopy Company’s outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $375,000. 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: Peanut Company Snoopy Company Debit Credit Debit Credit Cash $ 269,000 $ 80,000 Accounts Receivable 193,000 85,000 Inventory 196,000 106,000 Investment in Snoopy Company 306,600 0 Land 211,000 85,000 Buildings and Equipment 702,000 194,000 Cost of Goods Sold 375,000 168,000 Depreciation Expense 45,000 20,000 Selling & Administrative Expense 214,000 25,750 Dividends Declared 221,000 49,000 Accumulated Depreciation $ 495,000 $ 60,000 Accounts Payable 66,000 60,000 Bonds Payable 137,000 46,750 Common Stock 496,000 195,000 Retained Earnings 631,800 145,000 Sales 833,000 306,000 Income from Snoopy Company 73,800 0 Total $ 2,732,600…
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