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Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $513,100 cash....

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $513,100 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:

	Book Values			Fair Values
Computer software	$	65,500		$	120,750
Equipment		82,500			68,100
Client contracts		0			129,000
In-process research and development		0			30,250
Notes payable		(90,400	)		(95,400	)

At December 31, 2018, the following financial information is available for consolidation:

	Pratt			Spider
Cash	$	13,700		$	21,400
Receivables		140,500			41,500
Inventory		144,500			79,500
Investment in Spider		513,100			0
Computer software		229,000			65,500
Buildings (net)		569,000			130,000
Equipment (net)		366,000			82,500
Client contracts		0			0
Goodwill		0			0
Total assets	$	1,975,800		$	420,400
Accounts payable	$	(93,300	)	$	(59,500	)
Notes payable		(525,500	)		(90,400	)
Common stock		(380,000	)		(100,000	)
Additional paid-in capital		(170,000	)		(25,000	)
Retained earnings		(807,000	)		(145,500	)
Total liabilities and equities	$	(1,975,800	)	$	(420,400	)

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

In: Accounting

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2015, for $528,900 cash....

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2015, for $528,900 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:

	Book Values		Fair Values
Computer software	$	25,000	$	72,500
Equipment		44,200		33,800
Client contracts		0		116,500
In-process research and development		0		38,250
Notes payable		(75,500)		(84,450)

At December 31, 2015, the following financial information is available for consolidation:

	Pratt		Spider
Cash	$	15,000	$	19,300
Receivables		105,500		70,000
Inventory		160,500		70,500
Investment in Spider		528,900		0
Computer software		223,500		25,000
Buildings (net)		612,250		173,500
Equipment (net)		307,000		44,200
Client contracts		0		0
Goodwill		0		0

Total assets	$	1,952,650	$	402,500

Accounts payable	$	(91,400)	$	(34,500)
Notes payable		(552,250)		(75,500)
Common stock		(380,000)		(100,000)
Additional paid-in capital		(170,000)		(25,000)
Retained earnings		(759,000)		(167,500)

Total liabilities and equities	$	(1,952,650)	$	(402,500)

Note: Parentheses indicate a credit balance.

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2015.

In: Accounting

Problem 14-8 On December 31, 2017, Flint Company acquired a computer from Plato Corporation by issuing...

Problem 14-8

On December 31, 2017, Flint Company acquired a computer from Plato Corporation by issuing a $557,000 zero-interest-bearing note, payable in full on December 31, 2021. Flint Company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $63,000 salvage value.


	Your answer is partially correct. Try again.

Prepare the journal entry for the purchase on December 31, 2017. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2017

SHOW LIST OF ACCOUNTS
LINK TO TEXT


	Your answer is partially correct. Try again.

Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2018. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2018

	(To record the depreciation.)
December 31, 2018

	(To amortize the discount.)

Schedule of Note Discount Amortization
Date	Debit, Interest Expense Credit, Discount on Notes Payable	Carrying Amount of Note
12/31/17	$	$
12/31/18
12/31/19
12/31/20
12/31/21

SHOW LIST OF ACCOUNTS
LINK TO TEXT

In: Accounting

Problem 33-11 Yellow Company acquired a delivery truck, making payment of $2,680,000, the payment being analyzed...

Problem 33-11

Yellow Company acquired a delivery truck, making payment of $2,680,000, the payment being analyzed as follows:

Price of truck 2,500,000

Charge of extra equipment 50,000

Value added tax 300,000

Insurance for one year 120,000

Motor vehicle registration 10,000

—————

Total 2,980,000

Less: trade in value allowed on

old truck 300,000

——————

Cash paid 2,680,000

The old truck cost $1,500,000 and has a carrying amount of $200,000, and fair value of $50,000. The value added tax is refundable or recoverable.

Required:

Prepare journal entry to record the exchange transaction.

In: Accounting

Pepper Company acquired all of Salt Corporation’s outstanding shares on December 31, 2017 for $750,000 cash. Pepper...

Pepper Company acquired all of Salt Corporation’s outstanding shares on December

31, 2017 for $750,000 cash. Pepper will operate Salt as a wholly owned

subsidiary with a separate legal and accounting identity. Although many of Salt’s

book values approximate fair values, several of its accounts have a fair values that

differ from book values. In addition, Salt has internally developed assets that remain

unrecorded on its books. In deriving the acquisition price, Pepper assessed Salt’s

fair and book value differences as follows:

Account	Book Values	Fair Values

Patented Technology	$155,000	$237,000
Customer List	$0	$180,000
In-process R&D	$0	$200,000
Machinery	$105,000	$95,000
Notes Payable	($50,000)	($52,000)

Required: Complete the consolidation worksheet for Pepper and Salt at December 31, 2017.

In: Accounting

Pepper Company acquired all of Salt Corporation’s outstanding shares on December 31, 2017 for $750,000 cash. Pepper...

Pepper Company acquired all of Salt Corporation’s outstanding shares on December

31, 2017 for $750,000 cash. Pepper will operate Salt as a wholly owned

subsidiary with a separate legal and accounting identity. Although many of Salt’s

book values approximate fair values, several of its accounts have a fair values that

differ from book values. In addition, Salt has internally developed assets that remain

unrecorded on its books. In deriving the acquisition price, Pepper assessed Salt’s

fair and book value differences as follows:

Account	Book Values	Fair Values

Patented Technology	$155,000	$237,000
Customer List	$0	$180,000
In-process R&D	$0	$200,000
Machinery	$105,000	$95,000
Notes Payable	($50,000)	($52,000)

Required: Complete the consolidation worksheet for Pepper and Salt at December 31, 2017.

Problem 3 Consolidation Worksheet

Use entry reference letters (S, A)

			Consolidation Entries
Accounts	Pepper	Salt	Dr.	Cr.	Consolidation Totals

Cash	35,000	29,000
Receivables	150,000	65,000
Investment in Salt	750,000


Patented Technology	400,000	155,000
Customer List	840,000
In Process R&D
Machinery (net)	320,000	105,000
Goodwill
Total Assets	2,495,000	354,000

Accounts Payable	110,000	34,000
Notes Payable	370,000	50,000
Common Stock	460,000	50,000
Additional Paid in Capital	695,000	30,000
Retained Earnings	860,000	190,000
Total Liabilities and Equity	2,495,000	354,000

In: Accounting

On January 1, 20x1, Perdrillo Company acquired a new drilling machine costing $10,000. Estimated useful life...

On January 1, 20x1, Perdrillo Company acquired a new drilling machine costing $10,000. Estimated useful life of five years or 36,000 drilling operations and estimated salvage value of $1,000.

REQUIRED: Encircle the one correct answer for each of the following:

Show all supporting calculations or no credit.

Using straight-line depreciation, 20x1 depreciation expense is:

a. $2,000 b. $7,200 c. $1,800 d. $900 e. None of these.

Using units-of-production depreciation and that 8,000 drilling operations were made during 20x1, depreciation expense for 20x1 is:

a. $1,750 b. $1,944 c. $2,000 d. $ 1,800 e. None of th

Using declining balance depreciation, depreciation expense for 20x3 is:

a. $3,600 b. $2,000 c. $1,920 d. $1,440 e. None of these.

The machine was sold for $2,700 cash at a time when its accumulated depreciation was $8,300. The resulting gain or loss on disposal is:

a. $300 gain b. $1,700 loss c. $1,000 gain d. $2,700 loss

e. None of these

In: Accounting

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $507,950 cash....

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $507,950 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:

	Book Values			Fair Values
Computer software	$	29,000		$	78,600
Equipment		55,800			40,700
Client contracts		0			114,000
In-process research and development		0			30,500
Notes payable		(72,900	)		(81,950	)

At December 31, 2018, the following financial information is available for consolidation:

	Pratt			Spider
Cash	$	8,950		$	18,400
Receivables		103,500			87,000
Inventory		152,500			86,000
Investment in Spider		507,950			0
Computer software		227,000			29,000
Buildings (net)		604,750			130,500
Equipment (net)		358,000			55,800
Client contracts		0			0
Goodwill		0			0
Total assets	$	1,962,650		$	406,700
Accounts payable	$	(90,400	)	$	(44,000	)
Notes payable		(514,250	)		(72,900	)
Common stock		(380,000	)		(100,000	)
Additional paid-in capital		(170,000	)		(25,000	)
Retained earnings		(808,000	)		(164,800	)
Total liabilities and equities	$	(1,962,650	)	$	(406,700	)

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

In: Accounting

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2015, for $495,000 cash....

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2015, for $495,000 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:

	Book Values	Fair Values
Computer software? . . . . . . . . . . . . . . . . . .	$ 20,000	$ 70,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . .	40,000	30,000
Client contracts? . . . . . . . . . . . . . . . . . . . . .	–0–	100,000
In-process research and development . . . .	–0–	40,000
Notes payable ?. . . . . . . . . . . . . . . . . . . . . .	(60,000)	(65,000)

At December 31, 2015, 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, 2015.

In: Accounting

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $484,450 cash....

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $484,450 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:

	Book Values			Fair Values
Computer software	$	24,500		$	78,500
Equipment		65,500			49,800
Client contracts		0			129,500
In-process research and development		0			21,500
Notes payable		(76,000	)		(82,600	)

At December 31, 2018, the following financial information is available for consolidation:

	Pratt			Spider
Cash	$	10,750		$	14,500
Receivables		116,500			50,500
Inventory		142,500			86,500
Investment in Spider		484,450			0
Computer software		213,500			24,500
Buildings (net)		608,250			131,500
Equipment (net)		383,000			65,500
Client contracts		0			0
Goodwill		0			0
Total assets	$	1,958,950		$	373,000
Accounts payable	$	(91,200	)	$	(31,500	)
Notes payable		(521,750	)		(76,000	)
Common stock		(380,000	)		(100,000	)
Additional paid-in capital		(170,000	)		(25,000	)
Retained earnings		(796,000	)		(140,500	)
Total liabilities and equities	$	(1,958,950	)	$	(373,000	)

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

Please show calculations, thanks.

In: Accounting