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Pratt Company acquired all of the outstanding shares of Spider, Incorporated, on December 31, 2024, 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: Items Book Values Fair Values Computer software Equipment Client contracts Notes payable In-process research and development $ 46,600 $ 94,350 78,500 67,900 0 112,500 0 (71,900) 29,000 (78,900) At December 31, 2024, the following financial information is available for consolidation (credit balances in parentheses): Cash Receivables Items Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Required: Pratt Spider $ 32,400 120,500 $ 6,800 32,000 171,500 54,000 484,900 0 230,500 46,600 595,000 171,500 315,000 78,500 0 0 0 0 $ 1,949,800 $ 389,400 $ (95,300) (531,500) (380,000) (170,000) (773,000) $ (1,949,800) $ (41,000) (71,900) (100,000) (25,000) (151,500) $ (389,400) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2024. PRATT COMPANY AND SUBSIDIARY Consolidated Balance Sheet December 31, 2024 Assets Liabilities and Owners' Equity

Pratt Company acquired all of the outstanding shares of Spider, Incorporated, on December 31, 2024, 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: Items Book Values Fair Values Computer software Equipment Client contracts Notes payable In-process research and development $ 46,600 $ 94,350 78,500 67,900 0 112,500 0 (71,900) 29,000 (78,900) At December 31, 2024, the following financial information is available for consolidation (credit balances in parentheses): Cash Receivables Items Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Required: Pratt Spider $ 32,400 120,500 $ 6,800 32,000 171,500 54,000 484,900 0 230,500 46,600 595,000 171,500 315,000 78,500 0 0 0 0 $ 1,949,800 $ 389,400 $ (95,300) (531,500) (380,000) (170,000) (773,000) $ (1,949,800) $ (41,000) (71,900) (100,000) (25,000) (151,500) $ (389,400) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2024. PRATT COMPANY AND SUBSIDIARY Consolidated Balance Sheet December 31, 2024 Assets Liabilities and Owners' Equity

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Pratt Company acquired all of the outstanding shares of Spider, Incorporated, on December 31, 2024, 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: Items Book Values Fair Values Computer software Equipment Client contracts Notes payable In-process research and development $ 46,600 $ 94,350 78,500 67,900 0 112,500 0 (71,900) 29,000 (78,900) At December 31, 2024, the following financial information is available for consolidation (credit balances in parentheses): Cash Receivables Items Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Required: Pratt Spider $ 32,400 120,500 $ 6,800 32,000 171,500 54,000 484,900 0 230,500 46,600 595,000 171,500 315,000 78,500 0 0 0 0 $ 1,949,800 $ 389,400 $ (95,300) (531,500) (380,000) (170,000) (773,000) $ (1,949,800) $ (41,000) (71,900) (100,000) (25,000) (151,500) $ (389,400) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2024. PRATT COMPANY AND SUBSIDIARY Consolidated Balance Sheet December 31, 2024 Assets Liabilities and Owners' Equity
Transcribed Image Text:Pratt Company acquired all of the outstanding shares of Spider, Incorporated, on December 31, 2024, 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: Items Book Values Fair Values Computer software Equipment Client contracts Notes payable In-process research and development $ 46,600 $ 94,350 78,500 67,900 0 112,500 0 (71,900) 29,000 (78,900) At December 31, 2024, the following financial information is available for consolidation (credit balances in parentheses): Cash Receivables Items Inventory Investment in Spider Computer software Buildings (net) Equipment (net) Client contracts Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Required: Pratt Spider $ 32,400 120,500 $ 6,800 32,000 171,500 54,000 484,900 0 230,500 46,600 595,000 171,500 315,000 78,500 0 0 0 0 $ 1,949,800 $ 389,400 $ (95,300) (531,500) (380,000) (170,000) (773,000) $ (1,949,800) $ (41,000) (71,900) (100,000) (25,000) (151,500) $ (389,400) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2024. PRATT COMPANY AND SUBSIDIARY Consolidated Balance Sheet December 31, 2024 Assets Liabilities and Owners' Equity
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