$ 75,450 Receivables Inventory Buildings (net) Equipment (net) Total assets 80,800 27,900 $ 259,150 Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equities $ (16,900) (52,250) (90,000) (100,000) $ (259,150) On June 30, 2018, Princeton Company paid $315,300 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $16,300 in legal fees. Princeton also agreed to pay $54,100 to the former owners of Streeter contingent on meeting certain revenue goals during 2019. Princeton estimated the present value of its probability adjusted expected payment for the contingency at $18,400. In determining its offer, Princeton noted the following pertaining to Streeter: . It holds a building with a fair value $43,600 more than its book value. It has developed a customer list appraised at $23,000, although it is not recorded in its financial records. It has research and development activity in process with an appraised fair value of $38,600. 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. Journal entry worksheet Record the acquisition of Streeter company. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet 1 Record the legal fees related to the combination. Note: Enter debits before credits. Transaction General Journal Debit Credit - Record entry Clear entry View general journal