This question was created from Chapter 3 Illustration-C

on January 1 , 2axe, 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 , 2axe, are as follows:
Peanut Company snoopy Company
ASSETS
Cash
5 5,000
20, 000
Accounts Receivable
50.000
30, 000
Inventor*
100,000
Investment in Snoopy Stock
270.0.00
Land
225. 0.00
100,000
Buildings &x Equipment
200,000
Accumulated Depreciation
|10.001}
Total ASSETS
1.010.0.000
400. 0100
Liabilities & Stockholders’ Equity
Accounts Payable
75,000
25, 000
Bonds Payable
20.0.0.00
15, 000
LOLunion Stock
500, 0DO
200,000
Retained Earnings
225, 00.0
100,000
Total Liabilities &x Equity
1.000,000
400, 0.00
Required
&. Prepare the journal entry on Peanut’s books for the acquisition of Snoopy on January 1 . COX“
b. Prepare a consolidation worksheet on the acquisition date , January 1 , cake, in good form .