On January 1, NewTune Company exchanges 17,808 shares of its common stock for all of the...

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On January 1, NewTune Company exchanges 17,808 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. 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 $36,900 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) Receivables Trademarka Record music catalog In-process research and development Notes payable Book Values $ 32,000 $ Fair Values 27,550 98,250 270,750 82.500 269,250 0 225,000 (66,750) (60,750) Precombination book values for the two companies are as follows: Cash Receivables 83,500 $ 87,500 NewTune $ 443,000 886,000 349.000 On-the-Go 45,300 32,000 98,250 02.500 130,000 396,250 (57,000) (66,750) (50,000) (30,000) (192,500) Trademarka Record music catalog Equipment (net) Total Assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 1,849,000 $ (132,000) 5 (385,000) (400,000) (30,000) (902,000) $ (1,049,000) 5 (396,250) a. 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. NEWTUNE COMPANY AND ON-THE-GO, INC. Post-Combination Balance Sheet Cash Receivables Trademarks Assets Record music catalog In-process research and development Equipment (net) Goodwill Total assets January 1, 20XX Liabilities and Equity Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $ 0 Total liabilities and equities $ 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. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) NEWTUNE COMPANY AND ON-THE-GO, INC. Consolidation Worksheet January 1, 20XX Show less A Cash Consolidation Entries Accounts Newtune Co On-the-Go, Inc. Consolidated Debit Credit Totals Receivables Investment in On-the-Go Trademarks Record music catalog In-process research and development Equipment (net) Goodwill Total assets Accounts payable Notes payable $ 0 $ 0 $ 0 Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 0 $ 0 $ 0 $ 0 $ 0 < Required A Required > On January 1, NewTune Company exchanges 17,808 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. 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 $36,900 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) Receivables Trademarka Record music catalog In-process research and development Notes payable Book Values $ 32,000 $ Fair Values 27,550 98,250 270,750 82.500 269,250 0 225,000 (66,750) (60,750) Precombination book values for the two companies are as follows: Cash Receivables 83,500 $ 87,500 NewTune $ 443,000 886,000 349.000 On-the-Go 45,300 32,000 98,250 02.500 130,000 396,250 (57,000) (66,750) (50,000) (30,000) (192,500) Trademarka Record music catalog Equipment (net) Total Assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 1,849,000 $ (132,000) 5 (385,000) (400,000) (30,000) (902,000) $ (1,049,000) 5 (396,250) a. 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. NEWTUNE COMPANY AND ON-THE-GO, INC. Post-Combination Balance Sheet Cash Receivables Trademarks Assets Record music catalog In-process research and development Equipment (net) Goodwill Total assets January 1, 20XX Liabilities and Equity Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $ 0 Total liabilities and equities $ 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. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) NEWTUNE COMPANY AND ON-THE-GO, INC. Consolidation Worksheet January 1, 20XX Show less A Cash Consolidation Entries Accounts Newtune Co On-the-Go, Inc. Consolidated Debit Credit Totals Receivables Investment in On-the-Go Trademarks Record music catalog In-process research and development Equipment (net) Goodwill Total assets Accounts payable Notes payable $ 0 $ 0 $ 0 Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 0 $ 0 $ 0 $ 0 $ 0 < Required A Required >