Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me to find Goodwill and Additional paid-in capital. Problem 2-26 (LO 2-4, 2-5, 2-6b, 2-7) On June 30, 2017, Wisconsin, Inc., issued $153,400

image text in transcribed

Please help me to find Goodwill and Additional paid-in capital.

Problem 2-26 (LO 2-4, 2-5, 2-6b, 2-7) On June 30, 2017, 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, 2017, were as follows: Wisconsin Badger (397,000) 200,000 $ (1,077,000) 759,000 Revenues Expenses $ (318,000) (197,000) Net income Retained earnings, 1/1 $ (839,000) (318,000) 110,750 (213,000) (197,000) Net income C Dividends declared $(1,046,250) Retained earnings, 6/30 (410,000) Cash 197,250 423,000 915,000 737,000 166,000 171,000 364,000 Receivables and inventory Patented technology (net) Equipment (net) 609,000 1,310,000 2,272,250 Total assets Liabilities (596,000) (360,000) (270,000) (1,046,250) (430,000) (200,000) (270,000) (410,000) Common stock Additional paid-in capital Retained earnings 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 alll amounts as positive values) Answer is complete but not entirely correct. Accounts Amounts $ 285,400 Net income. Retained earnings 1/1/17 a $ 839,000 Patented technology. $ 1,256,800 C. Goodwill 986,800 d $1,179,400 Liabilities e. Common stock Additional paid-in capital. S f. 582,000 S 617,800 g

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

More Books

Students also viewed these Accounting questions

Question

Employment tests assist in evaluating an applicant's Blank______

Answered: 1 week ago

Question

What are some of the possible scenes from our future?

Answered: 1 week ago