Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 2, Problem 27P
To determine
Find the consolidated balances for the following accounts.
a. Net income
b.
c. Patented technology
d.
e. Liabilities
f. Common stock
g. Additional paid-in capital.
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On June 30, 2023, Wisconsin, Incorporated, issued $392,500 in debt and 15,400 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):
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)
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
Wisconsin
$ (1,023,000)
692,000
$ (331,000)
$…
On June 30, 2020, Wisconsin, Inc., issued $267,350 in debt and 18,400 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
$
(985,000
)
$
(339,000
)
Expenses
720,000
201,000
Net income
$
(265,000
)
$
(138,000
)
Retained earnings, 1/1
$
(843,000
)
$
(208,000
)
Net income
(265,000
)
(138,000
)
Dividends declared
106,250
0
Retained earnings, 6/30
$
(1,001,750
)
$
(346,000
)
Cash
$
110,750
$
59,000
Receivables and inventory
433,000
180,000
Patented technology (net)
929,000
372,000
Equipment (net)
727,000
619,000
Total assets
$
2,199,750
$…
On June 30, 2020, Wisconsin, Inc., issued $279,150 in debt and 19,200 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, 2020, were as follows (credit balances in parentheses):
Wisconsin
Badger
Revenues
$
(991,000
)
$
(347,000
)
Expenses
729,000
245,000
Net income
$
(262,000
)
$
(102,000
)
Retained earnings, 1/1
$
(828,000
)
$
(290,000
)
Net income
(262,000
)
(102,000
)
Dividends declared
97,000
0
Retained earnings, 6/30
$
(993,000
)
$
(392,000
)
Cash
$
69,000
$
147,000
Receivables and inventory
454,000
236,000
Patented technology (net)
951,000
305,000
Equipment (net)
705,000
634,000
Total assets
$
2,179,000
$…
Chapter 2 Solutions
Advanced Accounting
Ch. 2 - Prob. 1QCh. 2 - Describe the concept of a synergy. What are some...Ch. 2 - Prob. 3QCh. 2 - What does the term consolidated financial...Ch. 2 - Within the consolidation process, what is the...Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Which of the following does not represent a...Ch. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - When does gain recognition accompany a business...Ch. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - On June 1, Cline Co. paid 800,000 cash for all of...Ch. 2 - On May 1, Donovan Company reported the following...Ch. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - On its acquisition-date consolidated balance...Ch. 2 - On its acquisition-date consolidated balance...Ch. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - The following book and fair values were available...Ch. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - SafeData Corporation has the following account...Ch. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 39APBCh. 2 - Prob. 40APB
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- 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 $…arrow_forwardOn June 30, 2020, Wisconsin, Inc., issued $147,900 in debt and 20,400 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 $ (930,000 ) $ (331,000 ) Expenses 663,000 210,000 Net income $ (267,000 ) $ (121,000 ) Retained earnings, 1/1 $ (809,000 ) $ (216,000 ) Net income (267,000 ) (121,000 ) Dividends declared 114,250 0 Retained earnings, 6/30 $ (961,750 ) $ (337,000 ) Cash $ 69,750 $ 118,000 Receivables and inventory 461,000 194,000 Patented technology (net) 911,000 321,000 Equipment (net) 720,000 650,000 Total assets $ 2,161,750 $…arrow_forwardOn 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)…arrow_forward
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