On January 1, NewTune Company exchanges 19,681 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 $37,050 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	$	54,000			$	51,500
Trademarks		110,750				303,500
Record music catalog		84,750				271,500
In-process research and development		0				255,750
Notes payable		(65,250	)			(56,850	)

Precombination book values for the two companies are as follows:

	NewTune				On-the-Go
Cash	$	75,750			$	45,750
Receivables		82,250				54,000
Trademarks		410,000				110,750
Record music catalog		923,000				84,750
Equipment (net)		340,000				115,000
Totals	$	1,831,000			$	410,250
Accounts payable	$	(148,000	)		$	(35,000	)
Notes payable		(436,000	)			(65,250	)
Common stock		(400,000	)			(50,000	)
Additional paid-in capital		(30,000	)			(30,000	)
Retained earnings		(817,000	)			(230,000	)
Totals	$	(1,831,000	)		$	(110,750	)

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.