On June 30, 2020, Wisconsin, Inc., issued $92,400 in debt and 23,400 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 $ (944,000 ) $ (443,000 ) Expenses 686,000 287,000 Net income $ (258,000 ) $ (156,000 ) Retained earnings, 1/1 $ (853,000 ) $ (207,000 ) Net income (258,000 ) (156,000 ) Dividends declared 110,000 0 Retained earnings, 6/30 $ (1,001,000 ) $ (363,000 ) Cash $ 58,000 $ 154,000 Receivables and inventory 442,000 171,000 Patented technology (net) 923,000 329,000 Equipment (net) 723,000 655,000 Total assets $ 2,146,000 $ 1,309,000 Liabilities $ (515,000 ) $ (476,000 ) Common stock (360,000 ) (200,000 ) Additional paid-in capital (270,000 ) (270,000 ) Retained earnings (1,001,000 ) (363,000 ) Total liabilities and equities $ (2,146,000 ) $ (1,309,000 ) Wisconsin also paid $35,800 to a broker for arranging the transaction. In addition, Wisconsin paid $41,900 in stock issuance costs. Badger’s equipment was actually worth $821,500, but its patented technology was valued at only $305,700. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Accounts Amounts a. net income b. Retained earning, 1/1/20 c. Patented technology (net) d. goodwill e. Liabilities f. common stock g. addititional paid-in capital

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

On June 30, 2020, Wisconsin, Inc., issued $92,400 in debt and 23,400 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	$	(944,000	)	$	(443,000	)
Expenses		686,000			287,000
Net income	$	(258,000	)	$	(156,000	)
Retained earnings, 1/1	$	(853,000	)	$	(207,000	)
Net income		(258,000	)		(156,000	)
Dividends declared		110,000			0
Retained earnings, 6/30	$	(1,001,000	)	$	(363,000	)
Cash	$	58,000		$	154,000
Receivables and inventory		442,000			171,000
Patented technology (net)		923,000			329,000
Equipment (net)		723,000			655,000
Total assets	$	2,146,000		$	1,309,000
Liabilities	$	(515,000	)	$	(476,000	)
Common stock		(360,000	)		(200,000	)
Additional paid-in capital		(270,000	)		(270,000	)
Retained earnings		(1,001,000	)		(363,000	)
Total liabilities and equities	$	(2,146,000	)	$	(1,309,000	)

Wisconsin also paid $35,800 to a broker for arranging the transaction. In addition, Wisconsin paid $41,900 in stock issuance costs. Badger’s equipment was actually worth $821,500, but its patented technology was valued at only $305,700.

What are the consolidated balances for the following accounts? (Input all amounts as positive values)

Accounts Amounts

a. net income

b. Retained earning, 1/1/20

c. Patented technology (net)

d. goodwill

e. Liabilities

f. common stock

g. addititional paid-in capital

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions