On June 30, 2023, Wisconsin, Incorporated, issued $108,650 in debt and 24,200 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, 2023, were as follows (credit balances in parentheses): Items Wisconsin Badger Revenues $ (1,018,000) $ (378,000) Expenses 744,000 253,000 Net income $ (274,000) $ (125,000) Retained earnings, 1/1 $ (842,000) $ (282,000) Net income (274,000) (125,000) Dividends declared 104,500 0 Retained earnings, 6/30 $ (1,011,500) $ (407,000) Cash $ 39,500 $ 158,000 Receivables and inventory 469,000 267,000 Patented technology (net) 903,000 308,000 Equipment (net) 782,000 611,000 Total assets $ 2,193,500 $ 1,344,000 Liabilities $ (552,000) $ (467,000) Common stock (360,000) (200,000) Additional paid-in capital (270,000) (270,000) Retained earnings (1,011,500) (407,000) Total liabilities and equities $ (2,193,500) $ (1,344,000) Wisconsin also paid $32,800 to a broker for arranging the transaction. In addition, Wisconsin paid $43,200 in stock issuance costs. Badger’s equipment was actually worth $769,250, but its patented technology was valued at only $282,200. What are the consolidated balances for the following accounts? a. Net income: $241,300 b. Retained earnings 1/1/23: $842,000 c. Patented technology (net): $1,185,200 d. Goodwill: _ e. Liabilities: $1,127,650 f. Common stock: g. Additional paid-in-capital: ____ What arethe amounts of Goodwill, Common stock, and Additional paid-in-capital?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On June 30, 2023, Wisconsin, Incorporated, issued $108,650 in debt and 24,200 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, 2023, were as follows (credit balances in parentheses):

Items	Wisconsin	Badger
Revenues	$ (1,018,000)	$ (378,000)
Expenses	744,000	253,000
Net income	$ (274,000)	$ (125,000)
Retained earnings, 1/1	$ (842,000)	$ (282,000)
Net income	(274,000)	(125,000)
Dividends declared	104,500	0
Retained earnings, 6/30	$ (1,011,500)	$ (407,000)
Cash	$ 39,500	$ 158,000
Receivables and inventory	469,000	267,000
Patented technology (net)	903,000	308,000
Equipment (net)	782,000	611,000
Total assets	$ 2,193,500	$ 1,344,000
Liabilities	$ (552,000)	$ (467,000)
Common stock	(360,000)	(200,000)
Additional paid-in capital	(270,000)	(270,000)
Retained earnings	(1,011,500)	(407,000)
Total liabilities and equities	$ (2,193,500)	$ (1,344,000)

Wisconsin also paid $32,800 to a broker for arranging the transaction. In addition, Wisconsin paid $43,200 in stock issuance costs. Badger’s equipment was actually worth $769,250, but its patented technology was valued at only $282,200.

What are the consolidated balances for the following accounts?

a. Net income: $241,300

b. Retained earnings 1/1/23: $842,000

c. Patented technology (net): $1,185,200

d. Goodwill: _________

e. Liabilities: $1,127,650

f. Common stock: __________

g. Additional paid-in-capital: __________

What arethe amounts of Goodwill, Common stock, and Additional paid-in-capital?

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