On June 30, 2017, Wisconsin, Inc., issued $279,150 in debt and 19,200 new shares of...

90.2K

Verified Solution

Question

Accounting

On June 30, 2017, 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, 2017, were as follows:

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 $ 1,322,000
Liabilities $ (556,000 ) $ (460,000 )
Common stock (360,000 ) (200,000 )
Additional paid-in capital (270,000 ) (270,000 )
Retained earnings (993,000 ) (392,000 )
Total liabilities and equities $ (2,179,000 ) $ (1,322,000 )

Wisconsin also paid $36,800 to a broker for arranging the transaction. In addition, Wisconsin paid $46,200 in stock issuance costs. Badgers equipment was actually worth $784,750, but its patented technology was valued at only $277,200.

What are the consolidated balances for the following accounts?image

Answer is complete but not entirely correct. Accounts Amounts $ 225,200 $ 828,000 Net income Retained earnings, Patented technology. 1,228,200 Goodwill. Liabilities Common stock. Additional paid-in capital $ 113,000 $ 1,295,150 $ 552,000 $ 799,800 9

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students