Peanut Company acquired 80 percent of Snoopy Company’s outstanding common stock for $311,200 on January 1, 20X8, when th
Posted: Mon Apr 25, 2022 7:33 am
Peanut Company acquired 80 percent of Snoopy Company’s
outstanding common stock for $311,200 on January 1, 20X8, when the
book value of Snoopy’s net assets was equal to $389,000. Peanut
uses the equity method to account for investments. Trial balance
data for Peanut and Snoopy as of January 1, 20X8, follow:
Required:
a. Prepare the journal entry on Peanut's books for the acquisition
of Snoopy on January 1, 20X8.
b. Prepare a consolidation worksheet on the acquisition date,
January 1, 20X8.
c. Prepare a consolidated balance sheet on the acquisition date,
January 1, 20X8.
outstanding common stock for $311,200 on January 1, 20X8, when the
book value of Snoopy’s net assets was equal to $389,000. Peanut
uses the equity method to account for investments. Trial balance
data for Peanut and Snoopy as of January 1, 20X8, follow:
Required:
a. Prepare the journal entry on Peanut's books for the acquisition
of Snoopy on January 1, 20X8.
b. Prepare a consolidation worksheet on the acquisition date,
January 1, 20X8.
c. Prepare a consolidated balance sheet on the acquisition date,
January 1, 20X8.