Onder de ma and pay 200 123.000 1.000.000 2002.7 Accu Notepay Note: Parentheses indicate a credit balance. & Assume that this combination is a statutory merger so that On-the-Go's accounts will be meneemed to the records of New Tune On-the-Go will be dissolved and longer exist as a legal entity Prepara postcombination balance sheet for New Tune as of the acquisto dal Assets Cash Receivables Trademarks Record music catalog Research and development asset Equipment Goodwill Total Auton takes place in conection with the separate legali Prepare a worksheet combination dan Faraco ara ANG Cash Receivab Investment in On the Go Record music calang Research and dement Equipment Goodall Tou Accouple Note Common sock Add cap $ De NEWTUNE COMPANY AND ON-THE-GO, INC. Post-Combination Balance Sheet January 1, 2015 Libes and Owners Equity Accounts payable Notes payable Common stock Additional paid in capital Retained eanings Total abies and equies NEWTUNE COMPANY AND ON-THE-GO. INC. on Worksheet Code Con Extrus Credi On January 1, 2015, NewTune Company exchanges 17,953 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTune's shares has a $4 par value and a $50 fair value. The fair value of the stock exchanged in the acquisition was considered equal to On-the-Go's fair value. New Tune also paid $30,000 in stock registration and issuance costs in connection with the merger. Several of On-the-Go's accounts fair values differ from their book values on this date: Book Fair Values Values Receivables $ 39,000 $ 34,550 Trademarks 105,500 299,000 Record music catalog 68,250 262,500 0 210,000 In-process research and development Notes payable (50,750) (44,900) Precombination January 1, 2015, book values for the two companies are as follows: New Tune On-the-Go Cash S 83,500 $38,250 Receivables 74,500 39,000 Trademarks 426,000 105,500 916,000 68,250 Record music catalog Equipment (net) 393,000 123,000 Totals $ 1.893,000 $374,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $ (112,000) $ (52,750) (443,000) (50,750) (400,000) (50,000) (30,000) (30,000) (908,000) (190,500) Totals S (1,893,000) $(374,000) Note: Parentheses indicate a credit balance. a. Assume that this combination is a statutory merger so that On-the-Go's accounts will be transferred to the records of New Tune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for New Tune as of the acquisition date. NEWTUNE COMPANY AND ON-THE-GO, INC. Post-Combination Balance Sheet January 1, 2015 Assets Liabilities and Owners' Equity Cash Accounts payable Receivables Notes payable Trademarks Common stock Record music catalog Additional paid-in capital Research and development asset Retained earnings Equipment Goodwill Total assets Total liabilities and equities b. Assume that no dissolution takes place in connection with this combination. Rather, both companies retain their separate legal identities. Prepare a worksheet to consolidate the two companies as of the combination date. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) NEWTUNE COMPANY AND ON-THE-GO, INC. Consolidation Worksheet January 1, 2015 Consolidation Entries Accounts Newtune Co On-the-Go, Inc. Debit Credit Cash Receivables Investment in On-the-Go Trademarks Record music catalog Research and development asset Equipment Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Consolidated Totals Onder de ma and pay 200 123.000 1.000.000 2002.7 Accu Notepay Note: Parentheses indicate a credit balance. & Assume that this combination is a statutory merger so that On-the-Go's accounts will be meneemed to the records of New Tune On-the-Go will be dissolved and longer exist as a legal entity Prepara postcombination balance sheet for New Tune as of the acquisto dal Assets Cash Receivables Trademarks Record music catalog Research and development asset Equipment Goodwill Total Auton takes place in conection with the separate legali Prepare a worksheet combination dan Faraco ara ANG Cash Receivab Investment in On the Go Record music calang Research and dement Equipment Goodall Tou Accouple Note Common sock Add cap $ De NEWTUNE COMPANY AND ON-THE-GO, INC. Post-Combination Balance Sheet January 1, 2015 Libes and Owners Equity Accounts payable Notes payable Common stock Additional paid in capital Retained eanings Total abies and equies NEWTUNE COMPANY AND ON-THE-GO. INC. on Worksheet Code Con Extrus Credi On January 1, 2015, NewTune Company exchanges 17,953 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTune's shares has a $4 par value and a $50 fair value. The fair value of the stock exchanged in the acquisition was considered equal to On-the-Go's fair value. New Tune also paid $30,000 in stock registration and issuance costs in connection with the merger. Several of On-the-Go's accounts fair values differ from their book values on this date: Book Fair Values Values Receivables $ 39,000 $ 34,550 Trademarks 105,500 299,000 Record music catalog 68,250 262,500 0 210,000 In-process research and development Notes payable (50,750) (44,900) Precombination January 1, 2015, book values for the two companies are as follows: New Tune On-the-Go Cash S 83,500 $38,250 Receivables 74,500 39,000 Trademarks 426,000 105,500 916,000 68,250 Record music catalog Equipment (net) 393,000 123,000 Totals $ 1.893,000 $374,000 Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings $ (112,000) $ (52,750) (443,000) (50,750) (400,000) (50,000) (30,000) (30,000) (908,000) (190,500) Totals S (1,893,000) $(374,000) Note: Parentheses indicate a credit balance. a. Assume that this combination is a statutory merger so that On-the-Go's accounts will be transferred to the records of New Tune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for New Tune as of the acquisition date. NEWTUNE COMPANY AND ON-THE-GO, INC. Post-Combination Balance Sheet January 1, 2015 Assets Liabilities and Owners' Equity Cash Accounts payable Receivables Notes payable Trademarks Common stock Record music catalog Additional paid-in capital Research and development asset Retained earnings Equipment Goodwill Total assets Total liabilities and equities b. Assume that no dissolution takes place in connection with this combination. Rather, both companies retain their separate legal identities. Prepare a worksheet to consolidate the two companies as of the combination date. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) NEWTUNE COMPANY AND ON-THE-GO, INC. Consolidation Worksheet January 1, 2015 Consolidation Entries Accounts Newtune Co On-the-Go, Inc. Debit Credit Cash Receivables Investment in On-the-Go Trademarks Record music catalog Research and development asset Equipment Goodwill Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Total liabilities and equities Consolidated Totals