Question
On June 30, 2020, Wisconsin, Inc., issued $158,100 in debt and 21,600 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2020, Wisconsin, Inc., issued $158,100 in debt and 21,600 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 | ) | $ | (448,000 | ) | ||||||
Expenses | 687,000 | 286,000 | ||||||||||
Net income | $ | (296,000 | ) | $ | (162,000 | ) | ||||||
Retained earnings, 1/1 | $ | (892,000 | ) | $ | (253,000 | ) | ||||||
Net income | (296,000 | ) | (162,000 | ) | ||||||||
Dividends declared | 102,250 | 0 | ||||||||||
Retained earnings, 6/30 | $ | (1,085,750 | ) | $ | (415,000 | ) | ||||||
Cash | $ | 187,750 | $ | 259,000 | ||||||||
Receivables and inventory | 418,000 | 174,000 | ||||||||||
Patented technology (net) | 987,000 | 333,000 | ||||||||||
Equipment (net) | 706,000 | 601,000 | ||||||||||
Total assets | $ | 2,298,750 | $ | 1,367,000 | ||||||||
Liabilities | $ | (583,000 | ) | $ | (482,000 | ) | ||||||
Common stock | (360,000 | ) | (200,000 | ) | ||||||||
Additional paid-in capital | (270,000 | ) | (270,000 | ) | ||||||||
Retained earnings | (1,085,750 | ) | (415,000 | ) | ||||||||
Total liabilities and equities | $ | (2,298,750 | ) | $ | (1,367,000 | ) | ||||||
Wisconsin also paid $31,600 to a broker for arranging the transaction. In addition, Wisconsin paid $45,600 in stock issuance costs. Badgers equipment was actually worth $703,000, but its patented technology was valued at only $304,900.
What are the consolidated balances for the following accounts? (Input all amounts as positive values)
-net income
-retained earnings 1/1/20
-patented technology (net)
-goodwill
-liabilities
-common stock
-Additional paid in capital
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