On January 1, 2015, NewTune Company exchanges 16,888 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTunes shares has a $4 par value and a $50 fair value. The fair value of the stock exchanged in the acquisition was considered equal to On-the-Gos fair value. NewTune also paid $38,600 in stock registration and issuance costs in connection with the merger. Several of On-the-Gos accounts fair values differ from their book values on this date:

Book Values			Fair Values
Receivables	$	29,250		$	22,900
Trademarks		106,500			282,000
Record music catalog		67,000			190,000
In-process research and development		0			221,250
Notes payable		(62,500	)		(54,500	)

Precombination January 1, 2015, book values for the two companies are as follows:

NewTune				On-the-Go
Cash	$	64,000			$	45,000
Receivables		117,000				29,250
Trademarks		494,000				106,500
Record music catalog		868,000				67,000
Equipment (net)		402,000				150,000
Totals	$	1,945,000			$	397,750
Accounts payable	$	(158,000	)		$	(44,750	)
Notes payable		(450,000	)			(62,500	)
Common stock		(400,000	)			(50,000	)
Additional paid-in capital		(30,000	)			(30,000	)
Retained earnings		(907,000	)			(210,500	)
Totals	$	(1,945,000	)		$	(397,750	)

Note: Parentheses indicate a credit balance.

a.	Assume that this combination is a statutory merger so that On-the-Gos accounts will be transferred to the records of NewTune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for NewTune as of the acquisition date.

Note: Parentheses indicate a credit balance.

a.	Assume that this combination is a statutory merger so that On-the-Gos accounts will be transferred to the records of NewTune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for NewTune as of the acquisition date.

Assets Liabilities and Owner's Equity

Cash: Accounts payable:

Receivables: Notes payable:

Trademarks: Common stock:

Record music catalog: Additional paid-in capital:

Research and development asset: Retained earnings:

Equipment:

Goodwill:

Total Assets: Total Liabilities and Equities: