Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for...
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Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $484,900 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider's book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider's fair and book value differences as follows: Computer software Equipment Cilent contracts In-process research and development Notes payable Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses Total assets Accounts payable Additional paid-in capital Book Values Fair Values $ 46,000 $ $4,350 798,500 67,900 112,500 29,000 (78,900) Cash Pratt (71,500) Pratt $ 32,400$ 120,500 171,500 454,900 210,00 595,000 345,000 1170, (273,000 $1.945,00 1 $1.949,800 $ 399,400 (95,300 1 (41) (534,500) (71,900 (350,000) (400,000 (25) 32 400 $ 120.000 6,800 12,000 14,000 Prepare a consolidated balance shoot for Pratt and Spider as of December 31, 2021 PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Spider 46,600 171.500 79,500 6.000 32 000 (494 Orbit Credit Consolidated 129 Next: ment (net) it contracts Go will Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill Total assets Accounts payable Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Notes payable Common stock Additional paid-in capital Retained earnings Total abilities and equites S 315,000 $ 1,949,800 $ 389,400 (95,300) $ (41,000) (531,500) (380,000) (170,000) (773,000) Pratt (71,900) (100,000) (25,000) (151,500) $(1,949,800) $ (389,480) PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Spider 32.400 S 120,500 171.500 484.900 230.500 595.000 315.000 (531,500) (360,000 (170.000) (773,000 S 1.049.800 6,800 32,000 54,000 78,500 40.000 171.500 78.500 $ 1.949.800 S 389.400 S (95.300) S (41 000) (71.900) (100.000 (25.000) (161,500) S 359 400) S Debit OS Credit 0$ S Consolidated Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for $484,900 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider's book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider's fair and book value differences as follows: Computer software Equipment Cilent contracts In-process research and development Notes payable Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts At December 31, 2021, the following financial information is available for consolidation (credit balances in parentheses Total assets Accounts payable Additional paid-in capital Book Values Fair Values $ 46,000 $ $4,350 798,500 67,900 112,500 29,000 (78,900) Cash Pratt (71,500) Pratt $ 32,400$ 120,500 171,500 454,900 210,00 595,000 345,000 1170, (273,000 $1.945,00 1 $1.949,800 $ 399,400 (95,300 1 (41) (534,500) (71,900 (350,000) (400,000 (25) 32 400 $ 120.000 6,800 12,000 14,000 Prepare a consolidated balance shoot for Pratt and Spider as of December 31, 2021 PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Spider 46,600 171.500 79,500 6.000 32 000 (494 Orbit Credit Consolidated 129 Next: ment (net) it contracts Go will Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Cash Receivables Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Research and development asset Goodwill Total assets Accounts payable Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2021. Notes payable Common stock Additional paid-in capital Retained earnings Total abilities and equites S 315,000 $ 1,949,800 $ 389,400 (95,300) $ (41,000) (531,500) (380,000) (170,000) (773,000) Pratt (71,900) (100,000) (25,000) (151,500) $(1,949,800) $ (389,480) PRATT COMPANY AND SUBSIDIARY Worksheet for a Consolidated Balance Sheet December 31, 2021 Spider 32.400 S 120,500 171.500 484.900 230.500 595.000 315.000 (531,500) (360,000 (170.000) (773,000 S 1.049.800 6,800 32,000 54,000 78,500 40.000 171.500 78.500 $ 1.949.800 S 389.400 S (95.300) S (41 000) (71.900) (100.000 (25.000) (161,500) S 359 400) S Debit OS Credit 0$ S Consolidated
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Consolidated Balance Sheet as on December 31 2018 Assets Liabilities Cas... View the full answer
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
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