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Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)
Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $270,000 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 January 1, 20X8, are as follows:Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 20X8.
Prepare a consolidation worksheet on the acquisition date, January 1, 20X8, in good form.
Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8, in good form.
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