Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 30, 2020, Wisconsin, Inc., issued $153,400 in debt and 22,200 new shares of its $10 par value stock to Badger Company owners in

On June 30, 2020, Wisconsin, Inc., issued $153,400 in debt and 22,200 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, 2020, were as follows (credit balances in parentheses): Revenues Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net). Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Wisconsin $ (1,077,000) 759,000 Badger $ (397,000) 200,000 $ (318,000) $ (197,000) $ (839,000) (318,000) $ (213,000) (197,000) 110,750 0 $ (1,046,250) $ (410,000) $ 197,250 $ 166,000 423,000 171,000 915,000 364,000 737,000 $ 2,272,250 $ (596,000) (360,000) (270,000) (1,046,250) 609,000 $ 1,310,000 $ (430,000) (200,000) (270,000) (410,000) Total liabilities and equities $(2,272,250) $ (1,310,000) Wisconsin also paid $32,600 to a broker for arranging the transaction. In addition, Wisconsin paid $48,200 in stock issuance costs. Badger's equipment was actually worth $738,000, but its patented technology was valued at only $341,800. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Accounts 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 Amounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Acca Financial Reporting

Authors: BPP Learning Media

1st Edition

1509784888, 978-1509784882

More Books

Students also viewed these Accounting questions