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On June 30, 2021, Streeter Company reported the following account balances: $ (16,100) (74, 250) (90,000) (100,000) $ (280,350) Receivables 2$ Inventory Buildings (net) Equipment (net) 88,200 Current liabilities 75,250 Long-term liabilities 87,500 Common stock 29,400 Retained earnings $ 280,350 Total liabilities and equities Total assets On June 30, 2021, Princeton Company paid $315,200 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $19,900 in legal fees. Princeton also agreed to pay $66,400 to the former owners of Streeter contingent on meeting certain revenue goals during 2022. Princeton estimated the present value of its probability adjusted expected payment for the contingency at $23,700. In determining its offer, Princeton noted the following pertaining to Streeter: • It holds a building with a fair value $44,900 more than its book value. • It has developed a customer list appraised at $29,000, although it is not recorded in its financial records. • It has research and development activity in process with an appraised fair value of $39,100. However, the project has not yet reached technological feasibility and the assets used in the activity have no alternative future use. • Book values for the receivables, inventory, equipment, and liabilities approximate fair values. Prepare Princeton's accounting entries to record the combination with Streeter. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On June 30, 2021, Streeter Company reported the following account balances: $ (16,100) (74, 250) (90,000) (100,000) $ (280,350) Receivables 2$ Inventory Buildings (net) Equipment (net) 88,200 Current liabilities 75,250 Long-term liabilities 87,500 Common stock 29,400 Retained earnings $ 280,350 Total liabilities and equities Total assets On June 30, 2021, Princeton Company paid $315,200 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $19,900 in legal fees. Princeton also agreed to pay $66,400 to the former owners of Streeter contingent on meeting certain revenue goals during 2022. Princeton estimated the present value of its probability adjusted expected payment for the contingency at $23,700. In determining its offer, Princeton noted the following pertaining to Streeter: • It holds a building with a fair value $44,900 more than its book value. • It has developed a customer list appraised at $29,000, although it is not recorded in its financial records. • It has research and development activity in process with an appraised fair value of $39,100. However, the project has not yet reached technological feasibility and the assets used in the activity have no alternative future use. • Book values for the receivables, inventory, equipment, and liabilities approximate fair values. Prepare Princeton's accounting entries to record the combination with Streeter. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...
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On June 30, 2021, Streeter Company reported the following account balances: $ (16,100) (74, 250) (90,000) (100,000) $ (280,350) Receivables 2$ Inventory Buildings (net) Equipment (net) 88,200 Current liabilities 75,250 Long-term liabilities 87,500 Common stock 29,400 Retained earnings $ 280,350 Total liabilities and equities Total assets On June 30, 2021, Princeton Company paid $315,200 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $19,900 in legal fees. Princeton also agreed to pay $66,400 to the former owners of Streeter contingent on meeting certain revenue goals during 2022. Princeton estimated the present value of its probability adjusted expected payment for the contingency at $23,700. In determining its offer, Princeton noted the following pertaining to Streeter: • It holds a building with a fair value $44,900 more than its book value. • It has developed a customer list appraised at $29,000, although it is not recorded in its financial records. • It has research and development activity in process with an appraised fair value of $39,100O. However, the project has not yet reached technological feasibility and the assets used in the activity have no alternative future use. • Book values for the receivables, inventory, equipment, and liabilities approximate fair values. Prepare Princeton's accounting entries to record the combination with Streeter. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transcribed Image Text:On June 30, 2021, Streeter Company reported the following account balances: $ (16,100) (74, 250) (90,000) (100,000) $ (280,350) Receivables 2$ Inventory Buildings (net) Equipment (net) 88,200 Current liabilities 75,250 Long-term liabilities 87,500 Common stock 29,400 Retained earnings $ 280,350 Total liabilities and equities Total assets On June 30, 2021, Princeton Company paid $315,200 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $19,900 in legal fees. Princeton also agreed to pay $66,400 to the former owners of Streeter contingent on meeting certain revenue goals during 2022. Princeton estimated the present value of its probability adjusted expected payment for the contingency at $23,700. In determining its offer, Princeton noted the following pertaining to Streeter: • It holds a building with a fair value $44,900 more than its book value. • It has developed a customer list appraised at $29,000, although it is not recorded in its financial records. • It has research and development activity in process with an appraised fair value of $39,100O. However, the project has not yet reached technological feasibility and the assets used in the activity have no alternative future use. • Book values for the receivables, inventory, equipment, and liabilities approximate fair values. Prepare Princeton's accounting entries to record the combination with Streeter. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet 1 2 > Record the acquisition of Streeter Company. Note: Enter debits before credits. Transaction General Journal Debit Credit 1
Transcribed Image Text:Journal entry worksheet 1 2 > Record the acquisition of Streeter Company. Note: Enter debits before credits. Transaction General Journal Debit Credit 1
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