Question
On June 30, 2015, Wisconsin, Inc., issued $181,400 in debt and 23,100 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2015, Wisconsin, Inc., issued $181,400 in debt and 23,100 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, 2015, were as follows: |
Wisconsin | Badger | |||||||||
Revenues | $ | (1,043,000 | ) | $ | (453,000) | |||||
Expenses | 742,000 | 294,000 | ||||||||
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Net income | $ | (301,000 | ) | $ | (159,000) | |||||
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Retained earnings, 1/1 | $ | (825,000 | ) | $ | (264,000) | |||||
Net income | (301,000 | ) | (159,000) | |||||||
Dividends declared | 94,500 | 0 | ||||||||
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Retained earnings, 6/30 | $ | (1,031,500 | ) | $ | (423,000) | |||||
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Cash | $ | 101,500 | $ | 88,000 | ||||||
Receivables and inventory | 451,000 | 215,000 | ||||||||
Patented technology (net) | 931,000 | 374,000 | ||||||||
Equipment (net) | 705,000 | 661,000 | ||||||||
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Total assets | $ | 2,188,500 | $ | 1,338,000 | ||||||
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Liabilities | $ | (527,000 | ) | $ | (445,000) | |||||
Common stock | (360,000 | ) | (200,000) | |||||||
Additional paid-in capital | (270,000 | ) | (270,000) | |||||||
Retained earnings | (1,031,500 | ) | (423,000) | |||||||
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Total liabilities and equities | $ | (2,188,500 | ) | $ | (1,338,000) | |||||
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Note: Parentheses indicate a credit balance.
Wisconsin also paid $32,700 to a broker for arranging the transaction. In addition, Wisconsin paid $46,800 in stock issuance costs. Badgers equipment was actually worth $833,500, but its patented technology was valued at only $344,100. |
What are the consolidated balances for the following accounts? (Input all amounts as positive values.) |
a. net income b. retained earnings, 1/1/15 c. patented technology d. goodwill e. liabilities f. common stock g. additional paid in capital
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