Description of this paper

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2009.




P02-24 (Template in Excel spreadsheet) Pratt Company acquired all of Spider, Inc?s outstanding shares on December 31, 2009, for $495,000 cash. 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;Book Values Fair Values;Computer Software?????????????.. 20,000 70,000;Equipment??????????????????? 40,000 30,000;Client Contracts???????????????.. -0- 100,000;In-process research & Development??? -0- 40,000;Notes payable???????????????? (60,000) (65,000);At December 31, 2009 the following financial information is available for consolidation;Pratt Spider;Cash ?????????????????????? 36,000 18,000;Receivables?????????????????. 116,000 52,000;Inventory??????????????????. 140,000 90,000;Investment in Spider???????????.. 495,000 -0-;Computer Software????????????.. 210,000 20,000;Buildings (Net)???????????????. 595,000 130,000;Equipment (Net)?????????????.. 308,000 40,000;Client contracts??????????????.. -0- -0-;Goodwill ??????????????????. -0- -0-;Total Assets???????????.. 1,900,000 350,000;Accounts payable????????????? (88,000) (25,000);Notes payable??????????????? (510,000) (60,000);Common Stock??????????????? (380,000) (100,000);Additional paid-in capital?????????. (170,000) (25,000);Retained Earnings?????????????? (752,000) (140,000);Total liabilities and equities????. (1,900,000 (350,000);Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2009.


Paper#23632 | Written in 18-Jul-2015

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