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:

1. 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.
2. 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

Book Values Fair Values 84,200 Receivables 86,500 116,250 68,750 Trademarks 280,500 260,750 215,250 (54,600) Record music catalog In-process research and development Notes payable (64,000) Precombination book values for the two companies are as follows: On-the-Go NewTune Cash 67,750 104,250 414,000 837,000 382,000 37,250 86,500 116,250 68,750 113,000 Receivables Trademarks Record music catalog Equipment (net) 1,805,000 Totals 421,750 $ (116,000) (47,250) (391,000) (400,000) (30,000) (868,000) Accounts payable Notes payable (64,000) (50,000) (30,000) (230,500) Common stock Additional paid-in capital Retained earnings (1,805,000)$(116,250) Totals NEWTUNE COMPANY AND ON-THE-GO, INC. Consolidation Worksheet January 1, 2018 Consolidation Entries On-the-Go, Inc. Consolidated Totals Newtune Co Credit Accounts Debit Cash Receivables Investment in On-the-Go Trademarks Record music catalog Research and development asset Equipment Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities 0 0 0$ 0