Question Find study &

Answer resources
Explanation Related Questions Related Textbooks 숿

Question 숤 Answered

a. Prepare the journal entries on Peanut's books for the...

Image transcription text

Peanut lCompany acquired 100 percent of Snoopy

Company's outstanding common stock for $309,000 on

January 1, 20X8, when the book value of Snoop... Show more

a. Prepare the journal entries on Peanut's books for the acquisition of Snoopy on January 1, 20X8, as well as any normal equity method
entry(ies) related to the investment in Snoopy Company during 20X8.
b. Prepare consolidation worksheet for 20X8.
Please provide your working process!

Accounting Business Financial Accounting ACCOUNITNG MISC 섈 쉋

Answer & Explanation Solved by verified expert 숨 Rated

싙 Helpful

A. Journal Entries

Acquisition :

Investment in Snoopy Company - 309,000

Cash - 309,000

Acquisition of Snoopy Company

Income :

Investment in Snoopy Company - 46,000

Income from Snoopy Company - 46,000

Whatever adds or deducts to the subsidiary will also add or deduct to the investment account of the parent since equity method is used .
 Dividends :
Question Find study &
Answer resources
Explanation Related Questions Related Textbooks 숿
Cash - 39,000
Investment in Snoopy Company - 39,000

Whatever adds or deducts to the subsidiary will also add or deduct to the investment account of the parent since equity method is used .

B.

Common Stock - 205,000

Retained Earnings - 104,000
Investment in Snoopy Company - 309,000

To remove the common stock and retained earnings of the subsidiary .

C.
Income from Snoopy Company -46,000
Dividends Declared - 39,000
Investment in Snoopy Company - 7,000

To remove the income earned and dividends given to the parent.

Student review 싙 100% (1 rating)

Clear formatting

Is this answer helpful? Helpful 싙 Unhelpful 싗

Report this answer

Add to library

South Seattle College

/ ACCOUNITNG
/ ACCOUNITNG MISC
/ a. Prepare the journal entries on Peanut's

Related Answered Questions

숵 Q: Please advise thank you Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $300,000 on

숵 Q: please provide your working process! Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock fo

숵 Q: E2-12 Other Comprehensive Income Reported by Investee

Callas Corporation paid $380,000 to acquire 40 percent ownership

숵 Q: E2-1 Multiple-Choice Questions on Use of Cost and Equity Methods [AICPA Adapted]
Select the correct answer for each of

숵 Q: Required Tasks 1. Prepare the general journal entries for the above transactions (ignore giving explanations after every

See more 쇵

Can't find your question?

Ask a new question

숥 We have related textbook solutions for you!

 Question Find studyThis
Answer resources
& textbook containsRelated
Explanation questions and
Questions OtherTextbooks
Related related textbook solutions 숿
solutions related to the question you are
Solutions Solutions Solutions
viewing.

Chapter 4 / Exercise P4-17

쇴
Intermediate Accounting: Reporting and
Analysis
© © ©
Jones/Wahlen

Expert Verified Browse all textbooks solutions

View Solutions

Company Get Course Hero Careers

About Us iOS Leadership

Scholarships Android Careers
Sitemap Chrome Extension Campus Rep Program
Q&A Archive Educators
Standardized Tests Tutors
Education Summit

Help Legal Connect with Us

Contact Us Copyright Policy College Life

FAQ Academic Integrity Facebook
Feedback Our Honor Code Twitter
Privacy Policy LinkedIn
Terms of Use YouTube
Attributions Instagram

Copyright © 2022. Course Hero, Inc.

Course Hero is not sponsored or endorsed by any college or university.