On January 1, NewTune Company exchanges 18,430 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 $32,700 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 $ 86,500 $ 84,200 Trademarks 116,250 280,500 Record music catalog 68,750 260,750 In-process research and development 0 215,250 Notes payable (64,000 ) (54,600 ) Precombination book values for the two companies are as follows: NewTune On-the-Go Cash $ 67,750 $ 37,250 Receivables 104,250 86,500 Trademarks 414,000 116,250 Record music catalog 837,000 68,750 Equipment (net) 382,000 113,000 Total Assets $ 1,805,000 $ 421,750 Accounts payable $ (116,000 ) $ (47,250 ) Notes payable (391,000 ) (64,000 ) Common stock (400,000 ) (50,000 ) Additional paid-in capital (30,000 ) (30,000 ) Retained earnings (868,000 ) (230,500 ) Total liabilities and equities $ (1,805,000 ) $ (421,750 ) 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.