On June 30, 2023, Wisconsin, Incorporated, issued $158,250 in debt and 19,400 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, 2023, were as follows (credit balances in parentheses): Items Wisconsin Badger Revenues $ (1,001,000) $ (362,000) Expenses 690,000 247,000 Net income $ (311,000) $ (115,000) Retained earnings, 1/1 $ (869,000) $ (204,000) Net income (311,000) (115,000) Dividends declared 111,750 0 Retained earnings, 6/30 $ (1,068,250) $ (319,000) Cash $ 92,250 $114,000 Receivables and inventory 482,000 183,000 Patented technology (net) 935,000 293,000 Equipment (net) 713,000 695,000 Total assets $2,222,250 $1,285,000 Liabilities $ (524,000) $ (496,000) Common stock (360,000) (200,000) Additional paid-in capital (270,000) (270,000) Retained earnings (1,068,250) (319,000) Total liabilities and equities $ (2,222,250) $ (1,285,000) Wisconsin also paid $37,000 to a broker for arranging the transaction. In addition, Wisconsin paid $46,600 in stock issuance costs. Badger's equipment was actually worth $811,250, but its patented technology was valued at only $269,6 00. Required: What are the consolidated balances for the following accounts? Note: Input all amounts as positive values
On June 30, 2023, Wisconsin, Incorporated, issued $158,250 in debt and 19,400 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, 2023, were as follows (credit balances in parentheses): Items Wisconsin Badger Revenues $ (1,001,000) $ (362,000) Expenses 690,000 247,000 Net income $ (311,000) $ (115,000) Retained earnings, 1/1 $ (869,000) $ (204,000) Net income (311,000) (115,000) Dividends declared 111,750 0 Retained earnings, 6/30 $ (1,068,250) $ (319,000) Cash $ 92,250 $114,000 Receivables and inventory 482,000 183,000 Patented technology (net) 935,000 293,000 Equipment (net) 713,000 695,000 Total assets $2,222,250 $1,285,000 Liabilities $ (524,000) $ (496,000) Common stock (360,000) (200,000) Additional paid-in capital (270,000) (270,000) Retained earnings (1,068,250) (319,000) Total liabilities and equities $ (2,222,250) $ (1,285,000) Wisconsin also paid $37,000 to a broker for arranging the transaction. In addition, Wisconsin paid $46,600 in stock issuance costs. Badger's equipment was actually worth $811,250, but its patented technology was valued at only $269,6 00. Required: What are the consolidated balances for the following accounts? Note: Input all amounts as positive values
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education