On June 30, 2023, Wisconsin, Incorporated, issued $300,000 in debt and 15,000 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 Items Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Wisconsin $ (900,000) 660,000 $ (240,000) $ (800,000) (240,000) 90,000 $ (950,000) $ 80,000 400,000 900,000 700,000 $ 2,080,000 $ (500,000) (360,000) (270,000) (950,000) $ (2,080,000) Badger $ (300,000) 200,000 $ (100,000) $ (200,000) (100,000) 0 $ (300,000) $ 110,000 170,000 300,000 600,000 $ 1,180,000 $ (410,000) (200,000) (270,000) (300,000) $ (1,180,000) Wisconsin also paid $30,000 to a broker for arranging the transaction. In addition, Wisconsin paid $40,000 in stock issuance costs. Badger's equipment was actually worth $700,000, but its patented technology was valued at only $280,000. Required: What are the consolidated balances for the following accounts? Note: Input all amounts as positive values Accounts 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 Amounts
On June 30, 2023, Wisconsin, Incorporated, issued $300,000 in debt and 15,000 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 Items Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Wisconsin $ (900,000) 660,000 $ (240,000) $ (800,000) (240,000) 90,000 $ (950,000) $ 80,000 400,000 900,000 700,000 $ 2,080,000 $ (500,000) (360,000) (270,000) (950,000) $ (2,080,000) Badger $ (300,000) 200,000 $ (100,000) $ (200,000) (100,000) 0 $ (300,000) $ 110,000 170,000 300,000 600,000 $ 1,180,000 $ (410,000) (200,000) (270,000) (300,000) $ (1,180,000) Wisconsin also paid $30,000 to a broker for arranging the transaction. In addition, Wisconsin paid $40,000 in stock issuance costs. Badger's equipment was actually worth $700,000, but its patented technology was valued at only $280,000. Required: What are the consolidated balances for the following accounts? Note: Input all amounts as positive values Accounts 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 Amounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 30, 2023, Wisconsin, Incorporated, issued $300,000 in debt and 15,000 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
Items
Retained earnings, 1/1
Net income
Dividends declared
Retained earnings, 6/30
Cash
Receivables and inventory
Patented technology (net)
Equipment (net)
Total assets
Liabilities
Common stock
Additional paid-in capital
Retained earnings
Total liabilities and equities
Wisconsin
$ (900,000)
660,000
$ (240,000)
$ (800,000)
(240,000)
90,000
$ (950,000)
$ 80,000
400,000
900,000
700,000
$ 2,080,000
$ (500,000)
(360,000)
(270,000)
(950,000)
$ (2,080,000)
Badger
$ (300,000)
200,000
$ (100,000)
$ (200,000)
(100,000)
0
$ (300,000)
$ 110,000
170,000
300,000
600,000
$ 1,180,000
$ (410,000)
(200,000)
(270,000)
(300,000)
$ (1,180,000)
Wisconsin also paid $30,000 to a broker for arranging the transaction. In addition, Wisconsin paid $40,000 in stock issuance costs.
Badger's equipment was actually worth $700,000, but its patented technology was valued at only $280,000.
Required:
What are the consolidated balances for the following accounts?
Note: Input all amounts as positive values
Accounts
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
Amounts
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