Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 30, 2020, Wisconsin, Inc., issued $344,050 in debt and 19,100 new shares of its $10 par value stock to Badger Company owners

image text in transcribed

On June 30, 2020, Wisconsin, Inc., issued $344,050 in debt and 19,100 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): 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 $ (1,059,000) 734,000 $ (325,000) $ (846,000) (325,000) 111,250 $(1,059,750) Badger $ (454,000) 263,000 $ (191,000) $ (259,000) (191,000) 0 $ (450,000) $ 78,750 $ 175,000 478,000 285,000 307,000 606,000 931,000 721,000 $ 2,208,750 $ (519,000) (360,000) (270,000) (1,059,750) $(2,208,750) $ 1,373,000 $ (453,000) (200,000) (270,000) (450,000) $(1,373,000) Wisconsin also paid $36,000 to a broker for arranging the transaction. In addition, Wisconsin paid $48,400 in stock issuance costs. Badger's equipment was actually worth $768,750, but its patented technology was valued at only $282,100. 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

International Accounting

Authors: Frederick D. S. Choi, Gary K. Meek

7th Edition

0136111475, 9780136111474

More Books

Students also viewed these Accounting questions

Question

How would you establish the value of learning this material?

Answered: 1 week ago

Question

Explain the importance of Human Resource Management

Answered: 1 week ago

Question

Discuss the scope of Human Resource Management

Answered: 1 week ago

Question

Discuss the different types of leadership

Answered: 1 week ago

Question

Write a note on Organisation manuals

Answered: 1 week ago

Question

2.3 Define human resource ethics.

Answered: 1 week ago

Question

9 How can training be evaluated?

Answered: 1 week ago