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On June 30, 2020, Wisconsin, Inc., issued $207,100 in debt and 20,600 new shares of Its $10 par value stock to Badger Company owners in
On June 30, 2020, Wisconsin, Inc., issued $207,100 in debt and 20,600 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): Badger $ (383,880) 237,000 $ (146,880) $ (213,000) (146,880) 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 Total liabilities and equities Wisconsin $ (1,036,880) 741,800 $ (295,880) $ (875, 000) (295,880) 107,758 $(1,062,250) $ 81,250 488,888 982,888 799,000 $ 2,262,250 $ (570,000) (360,880) (270,880) (1,062,250) $(2,262,250) $ (359,880) $ 106,888 193,000 307,880 644,888 $ 1,250,000 $ (421,880) (280,880) (270,880) (359,880) $(1,250,880) Wisconsin also paid $30,100 to a broker for arranging the transaction. In addition, Wisconsin paid $41,000 In stock issuance costs. Badger's equipment was actually worth $807,500, but its patented technology was valued at only $284,000. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Amounts Accounts a. Net income b. Retained earnings, 1/1/20 c. Patented technology (net) d. Goodwill e. Liabilities f. Common stock 9. Additional paid-in capital
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