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Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)Consolidated Worksheet and Balance Sheet on...

Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method) Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, are as follows:

Peanut Company Snoopy Company

Assets  

Cash 55,000 20,000   

Accounts Receivable 50,000 30,000  

 Inventory 100,000 60,000   

Investment in Snoopy Stock 270,000  

 Land 225,000 100,000   

Buildings & Equipment 700,000 200,000   

Accumulated Depreciation  (400,000)  (10,000)

Total Assets 1,000,000 400,000

Liabilities & Stockholders' Equity   

Accounts Payable 75,000 25,000   

Bonds Payable 200,000 75,000   

Common Stock 500,000 200,000   

Retained Earnings  225,000 100,000

Total Liabilities & Equity 1,000,000 400,000

Required: Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 20X8.

Prepare a consolidation worksheet on the acquisition date, January 1, 20X8, in good form.

Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8, in good form.

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ekkarill92 answered 3 weeks ago
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