Question
On June 30, 2020, Wisconsin, Inc., issued $137,250 in debt and 22,300 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2020, Wisconsin, Inc., issued $137,250 in debt and 22,300 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, 2020, were as follows (credit balances in parentheses):
Wisconsin | Badger | |||||||||||
Revenues | $ | (983,000 | ) | $ | (477,000 | ) | ||||||
Expenses | 673,000 | 293,000 | ||||||||||
Net income | $ | (310,000 | ) | $ | (184,000 | ) | ||||||
Retained earnings, 1/1 | $ | (849,000 | ) | $ | (238,000 | ) | ||||||
Net income | (310,000 | ) | (184,000 | ) | ||||||||
Dividends declared | 92,500 | 0 | ||||||||||
Retained earnings, 6/30 | $ | (1,066,500 | ) | $ | (422,000 | ) | ||||||
Cash | $ | 170,500 | $ | 165,000 | ||||||||
Receivables and inventory | 452,000 | 211,000 | ||||||||||
Patented technology (net) | 917,000 | 398,000 | ||||||||||
Equipment (net) | 745,000 | 617,000 | ||||||||||
Total assets | $ | 2,284,500 | $ | 1,391,000 | ||||||||
Liabilities | $ | (588,000 | ) | $ | (499,000 | ) | ||||||
Common stock | (360,000 | ) | (200,000 | ) | ||||||||
Additional paid-in capital | (270,000 | ) | (270,000 | ) | ||||||||
Retained earnings | (1,066,500 | ) | (422,000 | ) | ||||||||
Total liabilities and equities | $ | (2,284,500 | ) | $ | (1,391,000 | ) | ||||||
Wisconsin also paid $32,000 to a broker for arranging the transaction. In addition, Wisconsin paid $42,600 in stock issuance costs. Badgers equipment was actually worth $728,750, but its patented technology was valued at only $371,900.
What are the consolidated balances for the following accounts? (Input all amounts as positive values)
Accounts | Amounts |
Net Income | |
Retained Earnings 1/1/20 | |
Patented Technology (net) | |
Goodwill | |
Liabilities | |
Common Stock | |
Additional Paid-In Capital |
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