Question
On June 30, 2020, Wisconsin, Inc., issued $143,250 in debt and 24,100 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2020, Wisconsin, Inc., issued $143,250 in debt and 24,100 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, 2020, were as follows (credit balances in parentheses):
Wisconsin | Badger | |||||||||||
Revenues | $ | (1,083,000 | ) | $ | (450,000 | ) | ||||||
Expenses | 746,000 | 259,000 | ||||||||||
Net income | $ | (337,000 | ) | $ | (191,000 | ) | ||||||
Retained earnings, 1/1 | $ | (847,000 | ) | $ | (274,000 | ) | ||||||
Net income | (337,000 | ) | (191,000 | ) | ||||||||
Dividends declared | 110,000 | 0 | ||||||||||
Retained earnings, 6/30 | $ | (1,074,000 | ) | $ | (465,000 | ) | ||||||
Cash | $ | 147,000 | $ | 153,000 | ||||||||
Receivables and inventory | 441,000 | 318,000 | ||||||||||
Patented technology (net) | 967,000 | 320,000 | ||||||||||
Equipment (net) | 705,000 | 631,000 | ||||||||||
Total assets | $ | 2,260,000 | $ | 1,422,000 | ||||||||
Liabilities | $ | (556,000 | ) | $ | (487,000 | ) | ||||||
Common stock | (360,000 | ) | (200,000 | ) | ||||||||
Additional paid-in capital | (270,000 | ) | (270,000 | ) | ||||||||
Retained earnings | (1,074,000 | ) | (465,000 | ) | ||||||||
Total liabilities and equities | $ | (2,260,000 | ) | $ | (1,422,000 | ) | ||||||
Wisconsin also paid $35,500 to a broker for arranging the transaction. In addition, Wisconsin paid $46,000 in stock issuance costs. Badgers equipment was actually worth $771,250, but its patented technology was valued at only $292,800.
What are the consolidated balances for the following accounts? (Input all amounts as positive values)
a. Net Income
B. Retained Earnings 1/1/20
C . Patented Technology (net)
D. Goodwill
E. Liabilities
F. Common Stock
G. Additional Paid in capital
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