Question
On June 30, 2013, Wisconsin, Inc., issued $92,400 in debt and 23,400 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2013, Wisconsin, Inc., issued $92,400 in debt and 23,400 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2013, were as follows:
Wisconsin | Badger | |||||
Revenues | $ | (944,000 | ) | $ | (443,000) | |
Expenses | 686,000 | 287,000 | ||||
Net income | $ | (258,000 | ) | $ | (156,000) | |
Retained earnings, 1/1 | $ | (853,000 | ) | $ | (207,000) | |
Net income | (258,000 | ) | (156,000) | |||
Dividends paid | 110,000 | 0 | ||||
Retained earnings, 6/30 | $ | (1,001,000 | ) | $ | (363,000) | |
Cash | $ | 58,000 | $ | 154,000 | ||
Receivables and inventory | 442,000 | 171,000 | ||||
Patented technology (net) | 923,000 | 329,000 | ||||
Equipment (net) | 723,000 | 655,000 | ||||
Total assets | $ | 2,146,000 | $ | 1,309,000 | ||
Liabilities | $ | (515,000 | ) | $ | (476,000) | |
Common stock | (360,000 | ) | (200,000) | |||
Additional paid-in capital | (270,000 | ) | (270,000) | |||
Retained earnings | (1,001,000 | ) | (363,000) | |||
Total liabilities and equities | $ | (2,146,000 | ) | $ | (1,309,000)
|
Note: Parentheses indicate a credit balance.
Wisconsin also paid $35,800 to a broker for arranging the transaction. In addition, Wisconsin paid $41,900 in stock issuance costs. Badgers equipment was actually worth $821,500, but its patented technology was valued at only $305,700. |
What are the consolidated balances for the following accounts? (Input all amounts as positive values.) |
Accounts | Amounts | |
a. | Net income | $ |
b. | Retained earnings, 1/1/13 | $ |
c. | Patented technology | $ |
d. | Goodwill | $ |
e. | Liabilities | $ |
f. | Common stock | $ |
g. | Additional paid-in capital | $ |
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