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On June 30, 2023, Wisconsin, Incorporated, issued $158,100 in debt and 21,600 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): Revenues Expenses Items Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Wisconsin $ (983,000) 687,000 $ (296,000) $ (892,000) (296,000) 102,250 $ (1,085,750) $ 187,750 418,000 987,000 706,000 Badger $ (448,000) 286,000 $ (162,000) $ (253,000) (162,000) 8 $ (415,000) $ 259,000 174,000 333,000 601,000

On June 30, 2023, Wisconsin, Incorporated, issued $158,100 in debt and 21,600 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): Revenues Expenses Items Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Wisconsin $ (983,000) 687,000 $ (296,000) $ (892,000) (296,000) 102,250 $ (1,085,750) $ 187,750 418,000 987,000 706,000 Badger $ (448,000) 286,000 $ (162,000) $ (253,000) (162,000) 8 $ (415,000) $ 259,000 174,000 333,000 601,000

FINANCIAL ACCOUNTING
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 $158.100 in debt and 21,600 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): Revenues Expenses Net income Retained earnings, 1/1 Net income Items Dividends declared Retained earnings, 6/38 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Accounts Required: What are the consolidated balances for the following accounts? Note: Input all amounts as positive values a. Net income b. Retained earnings, 1/1/23 c. Patented technology (net) d. Goodwill e. Liabilities f. Common stock g. Additional paid-in capital Answer is complete but not entirely correct. S S Wisconsin $ (983,000) 687,000 $ (296,000) $ (892,000) (296,000) 102,250 Amounts (9) Wisconsin also paid $31,600 to a broker for arranging the transaction. In addition, Wisconsin paid $45,600 in stock issuance costs. Badger's equipment was actually worth $703,000, but its patented technology was valued at only $304,900. 458,000 X 1,145,000 X $ 1,320,000 X S 60,100 x IS 1,065,000 X S 360,000 X 540,000 X Badger $ (448,000) 286,000 $ (1,085,750) $ 187,750 418,000 987,000 706,000 $ 2,298,750 $ (583,000) (360,000) (270,000) (1,085,750) $ (2,298,750) $ (1,367,009) $ (162,000) $ (253,000) (162,000) A $ (415,000) $ 259,000 174,000 333,000 601,000 $ 1,367,000 $ (482,000) (200,000) (270,000) (415,000)
Transcribed Image Text:On June 30, 2023, Wisconsin, Incorporated, issued $158.100 in debt and 21,600 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): Revenues Expenses Net income Retained earnings, 1/1 Net income Items Dividends declared Retained earnings, 6/38 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Accounts Required: What are the consolidated balances for the following accounts? Note: Input all amounts as positive values a. Net income b. Retained earnings, 1/1/23 c. Patented technology (net) d. Goodwill e. Liabilities f. Common stock g. Additional paid-in capital Answer is complete but not entirely correct. S S Wisconsin $ (983,000) 687,000 $ (296,000) $ (892,000) (296,000) 102,250 Amounts (9) Wisconsin also paid $31,600 to a broker for arranging the transaction. In addition, Wisconsin paid $45,600 in stock issuance costs. Badger's equipment was actually worth $703,000, but its patented technology was valued at only $304,900. 458,000 X 1,145,000 X $ 1,320,000 X S 60,100 x IS 1,065,000 X S 360,000 X 540,000 X Badger $ (448,000) 286,000 $ (1,085,750) $ 187,750 418,000 987,000 706,000 $ 2,298,750 $ (583,000) (360,000) (270,000) (1,085,750) $ (2,298,750) $ (1,367,009) $ (162,000) $ (253,000) (162,000) A $ (415,000) $ 259,000 174,000 333,000 601,000 $ 1,367,000 $ (482,000) (200,000) (270,000) (415,000)
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