On January 1, NewTune Company exchanges 18,235 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 $24,100 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	$	42,750			$	38,400
Trademarks		118,750				308,500
Record music catalog		80,250				248,250
In-process research and development		0				218,250
Notes payable		(52,500	)			(46,100	)

Precombination book values for the two companies are as follows:

	NewTune				On-the-Go
Cash	$	66,500			$	31,750
Receivables		153,500				42,750
Trademarks		463,000				118,750
Record music catalog		851,000				80,250
Equipment (net)		333,000				117,000
Totals	$	1,867,000			$	390,500
Accounts payable	$	(151,000	)		$	(37,000	)
Notes payable		(406,000	)			(52,500	)
Common stock		(400,000	)			(50,000	)
Additional paid-in capital		(30,000	)			(30,000	)
Retained earnings		(880,000	)			(221,000	)
Totals	$	(1,867,000	)		$	(118,750	)

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.