On June 30, 2021, Streeter Company reported the following account balances: Receivables $ 51,050 Current liabilities $ (11,800 ) Inventory 85,750 Long-term liabilities (52,000 ) Buildings (net) 83,400...

On June 30, 2021, Streeter Company reported the following account balances:

On June 30, 2021, Princeton Company paid $325,900 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $15,200 in legal fees. Princeton also agreed to pay $58,600 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 $17,700.

In determining its offer, Princeton noted the following pertaining to Streeter:

• It holds a building with a fair value $43,400 more than its book value.


• It has developed a customer list appraised at $30,500, although it is not recorded in its financial records.


• It has research and development activity in process with an appraised fair value of $37,100. 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

1- Record the acquisition of Streeter Company.
2- Record the legal fees related to the combination.