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On January 1, NewTune Company exchanges 17,590 shares of its common stock for all of the outstanding shares of On the Go, Inc. Each of

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On January 1, NewTune Company exchanges 17,590 shares of its common stock for all of the outstanding shares of On the Go, Inc. Each of New Tune's shares has a $4 par value and a $50 fair value the fair vahie of the stock exchanged in the acquisition was considered equal to On-the-Go's fair value. NewTune also paid 530,100 in stock registration and issuance costs in connection with the merger Several of On the Go's accounts for values differ from their book values on this date credit balances in parentheses ook alles van Receivables $ 79,2545 77,150 Trademarks 115,000 265.00 Record music catalog 61,500 187,750 In process research and development 2511,000 Notes payable (62,250) (54.100) Precombination book values for the two companies are di follows: Newlane One the Cash 76,750 $ 36,250 Receivables 85,250 79,250 Trademarks 478,000 115,000 Record music catalog 896,000 61,500 Equipment (net) 341,000 129,800 Total Assets $ 1,877,000 $421,000 Accounts payable 5 (145,200) 5 (46,750) Notes payable 046,000) (62,750 Common stock (480,000) (50,000 Additional paid-in capital (30,000) (0.000 Retained earnings (905.000) (233.500) Total liabilities and equities 5(1,677,000) $ (421,000) .. 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, b. 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. Complete this question by entering your answers in the tabs below. Required A Required B Assume that this combination is a statutory merger so that On-the-Go's accounts will be transferred to the records of New Tune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for New Tune as of the acquisition date. NEW TUNE COMPANY AND ON-THE-GO, INC Post-Combination Balance Sheet January 1, 20xx Assets Liabilities and Equity Cash Accounts payable Receivables Notes payable Trademarks Common stock Record music catalog Additional paid-in capital Retained earnings In-process research and development Equipment (net) Goodwill Total liabilities and equities On January 1, NewTune Company exchanges 17,590 shares of its common stock for all of the outstanding shares of On the Go, Inc. Each of New Tune's shares has a $4 par value and a $50 fair value the fair vahie of the stock exchanged in the acquisition was considered equal to On-the-Go's fair value. NewTune also paid 530,100 in stock registration and issuance costs in connection with the merger Several of On the Go's accounts for values differ from their book values on this date credit balances in parentheses ook alles van Receivables $ 79,2545 77,150 Trademarks 115,000 265.00 Record music catalog 61,500 187,750 In process research and development 2511,000 Notes payable (62,250) (54.100) Precombination book values for the two companies are di follows: Newlane One the Cash 76,750 $ 36,250 Receivables 85,250 79,250 Trademarks 478,000 115,000 Record music catalog 896,000 61,500 Equipment (net) 341,000 129,800 Total Assets $ 1,877,000 $421,000 Accounts payable 5 (145,200) 5 (46,750) Notes payable 046,000) (62,750 Common stock (480,000) (50,000 Additional paid-in capital (30,000) (0.000 Retained earnings (905.000) (233.500) Total liabilities and equities 5(1,677,000) $ (421,000) .. 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, b. 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. Complete this question by entering your answers in the tabs below. Required A Required B Assume that this combination is a statutory merger so that On-the-Go's accounts will be transferred to the records of New Tune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for New Tune as of the acquisition date. NEW TUNE COMPANY AND ON-THE-GO, INC Post-Combination Balance Sheet January 1, 20xx Assets Liabilities and Equity Cash Accounts payable Receivables Notes payable Trademarks Common stock Record music catalog Additional paid-in capital Retained earnings In-process research and development Equipment (net) Goodwill Total liabilities and equities

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