On 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 $ 1,283,000 Liabilities $ (570,000 ) $ (476,000 ) Common stock (360,000 ) (200,000 ) Additional paid-in capital (270,000 ) (270,000 ) Retained earnings (961,750 ) (337,000 ) Total liabilities and equities $ (2,161,750 ) $ (1,283,000 ) Wisconsin also paid $32,300 to a broker for arranging the transaction. In addition, Wisconsin paid $44,700 in stock issuance costs. Badger’s equipment was actually worth $768,500, but its patented technology was valued at only $300,800. What are the consolidated balances for the following accounts? (Input all amounts as positive values) a. net income b. retained earnings 1/1/20 c. patented technology (net) d. goodwill e. liabilities f. common stock g. additional paid-in capital

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14RE

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On 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		$	1,283,000
Liabilities	$	(570,000	)	$	(476,000	)
Common stock		(360,000	)		(200,000	)
Additional paid-in capital		(270,000	)		(270,000	)
Retained earnings		(961,750	)		(337,000	)
Total liabilities and equities	$	(2,161,750	)	$	(1,283,000	)

Wisconsin also paid $32,300 to a broker for arranging the transaction. In addition, Wisconsin paid $44,700 in stock issuance costs. Badger’s equipment was actually worth $768,500, but its patented technology was valued at only $300,800.

What are the consolidated balances for the following accounts? (Input all amounts as positive values)

a. net income

b. retained earnings 1/1/20

c. patented technology (net)

d. goodwill

e. liabilities

f. common stock

g. additional paid-in capital

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