On June 30, 2020, Wisconsin, Inc., issued $147,900 in debt and 20,400 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 $ (930,000 ) $ (331,000 ) Expenses 663,000 210,000 Net income $ (267,000 ) $ (121,000 ) Retained earnings, 1/1 $ (809,000 ) $ (216,000 ) Net income (267,000 ) (121,000 ) Dividends declared 114,250 0 Retained earnings, 6/30 $ (961,750 ) $ (337,000 ) Cash $ 69,750 $ 118,000 Receivables and inventory 461,000 194,000 Patented technology (net) 911,000 321,000 Equipment (net) 720,000 650,000 Total assets $ 2,161,750 $ 1,283,000 Liabilities $ (570,000 ) $ (476,000 ) Common stock (360,000 ) (200,000 ) Additional paid-in capital (270,000 ) (270,000 ) Retained earnings (961,750 ) (337,000 ) Total liabilities and equities $ (2,161,750 ) $ (1,283,000 ) Wisconsin also paid $32,300 to a broker for arranging the transaction. In addition, Wisconsin paid $44,700 in stock issuance costs. Badger’s equipment was actually worth $768,500, but its patented technology was valued at only $300,800. What are the consolidated balances for the following accounts? (Input all amounts as positive values) 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
On June 30, 2020, Wisconsin, Inc., issued $147,900 in debt and 20,400 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 | $ | (930,000 | ) | $ | (331,000 | ) | ||
Expenses | 663,000 | 210,000 | ||||||
Net income | $ | (267,000 | ) | $ | (121,000 | ) | ||
$ | (809,000 | ) | $ | (216,000 | ) | |||
Net income | (267,000 | ) | (121,000 | ) | ||||
Dividends declared | 114,250 | 0 | ||||||
Retained earnings, 6/30 | $ | (961,750 | ) | $ | (337,000 | ) | ||
Cash | $ | 69,750 | $ | 118,000 | ||||
Receivables and inventory | 461,000 | 194,000 | ||||||
Patented technology (net) | 911,000 | 321,000 | ||||||
Equipment (net) | 720,000 | 650,000 | ||||||
Total assets | $ | 2,161,750 | $ | 1,283,000 | ||||
Liabilities | $ | (570,000 | ) | $ | (476,000 | ) | ||
Common stock | (360,000 | ) | (200,000 | ) | ||||
Additional paid-in capital | (270,000 | ) | (270,000 | ) | ||||
Retained earnings | (961,750 | ) | (337,000 | ) | ||||
Total liabilities and equities | $ | (2,161,750 | ) | $ | (1,283,000 | ) | ||
Wisconsin also paid $32,300 to a broker for arranging the transaction. In addition, Wisconsin paid $44,700 in stock issuance costs. Badger’s equipment was actually worth $768,500, but its patented technology was valued at only $300,800.
What are the consolidated balances for the following accounts? (Input all amounts as positive values)
a. net income
b. retained earnings 1/1/20
c. patented technology (net)
d.
e. liabilities
f. common stock
g. additional paid-in capital
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