On June 30, 2020, Wisconsin, Inc., issued $279,150 in debt and 19,200 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, 2020, were as follows (credit balances in parentheses): Wisconsin Badger Revenues $ (991,000 ) $ (347,000 ) Expenses 729,000 245,000 Net income $ (262,000 ) $ (102,000 ) Retained earnings, 1/1 $ (828,000 ) $ (290,000 ) Net income (262,000 ) (102,000 ) Dividends declared 97,000 0 Retained earnings, 6/30 $ (993,000 ) $ (392,000 ) Cash $ 69,000 $ 147,000 Receivables and inventory 454,000 236,000 Patented technology (net) 951,000 305,000 Equipment (net) 705,000 634,000 Total assets $ 2,179,000 $ 1,322,000 Liabilities $ (556,000 ) $ (460,000 ) Common stock (360,000 ) (200,000 ) Additional paid-in capital (270,000 ) (270,000 ) Retained earnings (993,000 ) (392,000 ) Total liabilities and equities $ (2,179,000 ) $ (1,322,000 ) Wisconsin also paid $36,800 to a broker for arranging the transaction. In addition, Wisconsin paid $46,200 in stock issuance costs. Badger’s equipment was actually worth $784,750, but its patented technology was valued at only $277,200. What are the consolidated balances for the following accounts? (Input all amounts as positive values)
On June 30, 2020, Wisconsin, Inc., issued $279,150 in debt and 19,200 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, 2020, were as follows (credit balances in parentheses): Wisconsin Badger Revenues $ (991,000 ) $ (347,000 ) Expenses 729,000 245,000 Net income $ (262,000 ) $ (102,000 ) Retained earnings, 1/1 $ (828,000 ) $ (290,000 ) Net income (262,000 ) (102,000 ) Dividends declared 97,000 0 Retained earnings, 6/30 $ (993,000 ) $ (392,000 ) Cash $ 69,000 $ 147,000 Receivables and inventory 454,000 236,000 Patented technology (net) 951,000 305,000 Equipment (net) 705,000 634,000 Total assets $ 2,179,000 $ 1,322,000 Liabilities $ (556,000 ) $ (460,000 ) Common stock (360,000 ) (200,000 ) Additional paid-in capital (270,000 ) (270,000 ) Retained earnings (993,000 ) (392,000 ) Total liabilities and equities $ (2,179,000 ) $ (1,322,000 ) Wisconsin also paid $36,800 to a broker for arranging the transaction. In addition, Wisconsin paid $46,200 in stock issuance costs. Badger’s equipment was actually worth $784,750, but its patented technology was valued at only $277,200. What are the consolidated balances for the following accounts? (Input all amounts as positive values)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On June 30, 2020, Wisconsin, Inc., issued $279,150 in debt and 19,200 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, 2020, were as follows (credit balances in parentheses):
| Wisconsin | Badger | |||||||
| Revenues | $ | (991,000 | ) | $ | (347,000 | ) | ||
| Expenses | 729,000 | 245,000 | ||||||
| Net income | $ | (262,000 | ) | $ | (102,000 | ) | ||
| $ | (828,000 | ) | $ | (290,000 | ) | |||
| Net income | (262,000 | ) | (102,000 | ) | ||||
| Dividends declared | 97,000 | 0 | ||||||
| Retained earnings, 6/30 | $ | (993,000 | ) | $ | (392,000 | ) | ||
| Cash | $ | 69,000 | $ | 147,000 | ||||
| Receivables and inventory | 454,000 | 236,000 | ||||||
| Patented technology (net) | 951,000 | 305,000 | ||||||
| Equipment (net) | 705,000 | 634,000 | ||||||
| Total assets | $ | 2,179,000 | $ | 1,322,000 | ||||
| Liabilities | $ | (556,000 | ) | $ | (460,000 | ) | ||
| Common stock | (360,000 | ) | (200,000 | ) | ||||
| Additional paid-in capital | (270,000 | ) | (270,000 | ) | ||||
| Retained earnings | (993,000 | ) | (392,000 | ) | ||||
| Total liabilities and equities | $ | (2,179,000 | ) | $ | (1,322,000 | ) | ||
Wisconsin also paid $36,800 to a broker for arranging the transaction. In addition, Wisconsin paid $46,200 in stock issuance costs. Badger’s equipment was actually worth $784,750, but its patented technology was valued at only $277,200.
What are the consolidated balances for the following accounts? (Input all amounts as positive values)
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