On January 1, NewTune Company exchanges 17,949 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 $23,500 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 (credit balances in parentheses): Book Values Fair Values Receivables $ 35,250 $ 29,150 Trademarks 102,500 255,500 Record music catalog 80,000 267,500 In-process research and development 0 223,500 Notes payable (66,250 ) (56,900 ) Precombination book values for the two companies are as follows: NewTune On-the-Go Cash $ 74,000 $ 30,000 Receivables 128,000 35,250 Trademarks 411,000 102,500 Record music catalog 928,000 80,000 Equipment (net) 379,000 166,000 Total Assets $ 1,920,000 $ 413,750 Accounts payable $ (189,000 ) $ (51,500 ) Notes payable (465,000 ) (66,250 ) Common stock (400,000 ) (50,000 ) Additional paid-in capital (30,000 ) (30,000 ) Retained earnings (836,000 ) (216,000 ) Total liabilities and equities $ (1,920,000 ) $ (413,750 )

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. 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.