On January $1,$ NewTune Company exchanges $16,705$ shares of its common stock for all of the outstanding shares of On$-$the$-$Go$,$ Incorporated. Each of NewTune$$s shares has a $$4$ par value and a $$50$ fair value. The fair value of the stock exchanged in the acquisition was considered equal to On$-$the$-$Go$$s fair value. NewTune also paid $$24,100$ in stock registration and issuance costs in connection with the merger.

Several of On$-$the$-$Go$$s accounts$$ fair values differ from their book values on this date $($credit balances in parentheses$)$:

Items Book Values Fair Values

Receivables $ $64,250$ $ $57,700$

Trademarks $102,000235,500$

Record music catalog $65,750247,250$

In$-$process research and development $0216,000$

Notes payable $(59,750)(53,550)$

Precombination book values for the two companies are as follows:

Items NewTune On$-$the$-$Go

Cash $ $64,750$ $ $31,500$

Receivables $76,25064,250$

Trademarks $470,000102,000$

Record music catalog $896,00065,750$

Equipment $($net$)413,000106,000$

Totals $ $1,920,000$ $ $369,500$

Accounts payable $ $(154,000)$ $ $(34,750)$

Notes payable $(427,000)(59,750)$

Common stock $(400,000)(50,000)$

Additional paid$-$in capital $(30,000)(30,000)$

Retained earnings $(909,000)(195,000)$

Totals $ $(1,920,000)$ $ $(369,500)$

Required:

Assume that this combination is a statutory merger so that On$-$the$-$Go$$s 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.

Assume that no dissolution takes place in connection with this combination. Rather, both companies retain their separate legal identities. Prepare a worksheet to consolidate the two companies as of the combination date.