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12 Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $300,000 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 December 31, 20X8, are as follows: Debit 10 points Snoopy Company Debit Credit $ 80,000 65,000 75,000 eBook 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 Income from Snoopy Company Total Peanut Company Credit $ 130,00 165,000 200,000 355,000 200,000 700,000 200,00 50,000 225,000 180,000 $ 450,000 75,000 200,000 500,000 225,000 800,000 75,000 $2,325,000 $2,325,000 100,000 200,000 125,000 10,000 40,000 20,000 Ask $ 20,000 60,000 85.000 200,000 100,000 250,000 Print $715,000 $715,000 References (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 normal equity method entry(ies) 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.) View transaction list Journal entry worksheet BC Record the initial investment in Snoopy Company. Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general journal

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