Question
On June 30, 2017, Wisconsin, Inc., issued $279,150 in debt and 19,200 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2017, Wisconsin, Inc., issued $279,150 in debt and 19,200 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, 2017, were as follows:
Wisconsin | Badger | |||||||||||
Revenues | $ | (991,000 | ) | $ | (347,000 | ) | ||||||
Expenses | 729,000 | 245,000 | ||||||||||
Net income | $ | (262,000 | ) | $ | (102,000 | ) | ||||||
Retained earnings, 1/1 | $ | (828,000 | ) | $ | (290,000 | ) | ||||||
Net income | (262,000 | ) | (102,000 | ) | ||||||||
Dividends declared | 97,000 | 0 | ||||||||||
Retained earnings, 6/30 | $ | (993,000 | ) | $ | (392,000 | ) | ||||||
Cash | $ | 69,000 | $ | 147,000 | ||||||||
Receivables and inventory | 454,000 | 236,000 | ||||||||||
Patented technology (net) | 951,000 | 305,000 | ||||||||||
Equipment (net) | 705,000 | 634,000 | ||||||||||
Total assets | $ | 2,179,000 | $ | 1,322,000 | ||||||||
Liabilities | $ | (556,000 | ) | $ | (460,000 | ) | ||||||
Common stock | (360,000 | ) | (200,000 | ) | ||||||||
Additional paid-in capital | (270,000 | ) | (270,000 | ) | ||||||||
Retained earnings | (993,000 | ) | (392,000 | ) | ||||||||
Total liabilities and equities | $ | (2,179,000 | ) | $ | (1,322,000 | ) | ||||||
Wisconsin also paid $36,800 to a broker for arranging the transaction. In addition, Wisconsin paid $46,200 in stock issuance costs. Badgers equipment was actually worth $784,750, but its patented technology was valued at only $277,200.
What are the consolidated balances for the following accounts?
Answer is complete but not entirely correct. Accounts Amounts $ 225,200 $ 828,000 Net income Retained earnings, Patented technology. 1,228,200 Goodwill. Liabilities Common stock. Additional paid-in capital $ 113,000 $ 1,295,150 $ 552,000 $ 799,800 9Step by Step Solution
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