Question

had to repost first answer was wrong plz do it right or dont do it at all

Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $305,000 on January 1, 20x8, when the book value of Snoopy's net assets was equal to $305,000, Peanut chooses to carry the investment in Snoopy at cost because the investment will be cons Peanut and Snoopy as of December 31, 20X8. are as follows: $ Snoopy Company Debit Credit $ 75,000 71,000 86,000 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 Peanut Company Debit Credit 232,000 201,000 193,000 305,000 209,000 718,000 273,000 56,000 244,000 111,000 437,000 70,000 187,000 487,000 81,000 180,000 130,000 19,000 53,000 24,000 $ 38,000 55,000 65,000 217.000

Answer 1

Journal Entries Post Debit Date Account Title and Explaination Credit Ref. (S) (S) Intercorporate Investment 305,000.00 1 Cash 305,000.00 (To record Investment in Subsidiary Company) Cash (Or) Dividends Receivable 2 24,000.00 Intercorporate Investment $ 24,000.00 (To record dividends from subsidiary) (Note that if dividends received then debit Cash otherwise debit "Dividends Receivable"