80.2K

Verified Solution

Link Copied!

Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $318,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $318,000. Peanut chooses to carry the investment in Snoopy at cost because the Investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit Credit $ 72,000 82,000 81,000 Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total Peanut Company Debit Credit $ 232,000 209,000 191,000 318,000 219,000 708,000 299,000 67,000 245,000 102,000 $ 437,000 59,000 186,000 494,000 576,000 795,000 34,000 $2,581,000 $2,581,000 91,000 180,000 138,000 15, eee 58,000 34,000 $ 30,000 44,000 100,000 212,000 106,000 259,000 0 $751,000 $751,000 (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 other entries related to the Investment in Snoopy Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prey 1 of 2 Next ch ORE Journal entry worksheet Tch ORI D C Less Dividends declared Ending Balance Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Co. Land Buildings & Equipment Less: Accumulated depreciation Total Assets Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $318,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $318,000. Peanut chooses to carry the investment in Snoopy at cost because the Investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit Credit $ 72,000 82,000 81,000 Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total Peanut Company Debit Credit $ 232,000 209,000 191,000 318,000 219,000 708,000 290,000 67,000 245,000 102,000 $ 437,000 59,000 186,000 494,000 576,000 795,000 34,000 $2,581,000 $2,581,000 91,000 180,000 138,000 15,000 58,000 34,000 $ 30,000 44,000 100,000 212,000 106,000 259,000 0 $751,000 $751,000 (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 other entries related to the Investment in Snoopy Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prey 1 of 2 Next ch ORE Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $318,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $318,000. Peanut chooses to carry the investment in Snoopy at cost because the Investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit Credit $ 72,000 82,000 81,000 Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total Peanut Company Debit Credit $ 232,000 209,000 191,000 318,000 219,000 708,000 299,000 67,000 245,000 102,000 $ 437,000 59,000 186,000 494,000 576,000 795,000 34,000 $2,581,000 $2,581,000 91,000 180,000 138,000 15, eee 58,000 34,000 $ 30,000 44,000 100,000 212,000 106,000 259,000 0 $751,000 $751,000 (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 other entries related to the Investment in Snoopy Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prey 1 of 2 Next ch ORE Journal entry worksheet Tch ORI D C Less Dividends declared Ending Balance Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Co. Land Buildings & Equipment Less: Accumulated depreciation Total Assets Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $318,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $318,000. Peanut chooses to carry the investment in Snoopy at cost because the Investment will be consolidated. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows: Snoopy Company Debit Credit $ 72,000 82,000 81,000 Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Dividend Income Total Peanut Company Debit Credit $ 232,000 209,000 191,000 318,000 219,000 708,000 290,000 67,000 245,000 102,000 $ 437,000 59,000 186,000 494,000 576,000 795,000 34,000 $2,581,000 $2,581,000 91,000 180,000 138,000 15,000 58,000 34,000 $ 30,000 44,000 100,000 212,000 106,000 259,000 0 $751,000 $751,000 (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 other entries related to the Investment in Snoopy Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prey 1 of 2 Next ch ORE

Answer & Explanation Solved by verified expert

See Answer