On June 30, 2017, Wisconsin, Inc., issued $358,600 in debt and 17,500 new shares of its...

Transcribed Image Text:

On June 30, 2017, Wisconsin, Inc., issued $358,600 in debt and 17,500 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 $ (1,021,000) 692,000 Badger $ ( 411,000) 223,000 Revenues Expenses Net income ( 329,000) (188,000) (888,000) ( 329,000) Retained earnings, 1/1 (228,000) (188,000) Net income Dividends declared 114,750 Retained earnings, 6/30 $ (1,102,250) (416,000) 127,000 267,000 345,000 614,000 Cash 142,250 Receivables and inventory Patented technology (net) Equipment (net) 434,000 940,000 787,000 Total assets $ 2,303,250 $ 1,353,000 Liabilities Common stock Additional paid-in capital Retained earnings (571,000) (360,000) (270,000) (1,102,250) ( 467,000) (200,000) (270,000) (416,000) $ (1,353,000) Total liabilities and equities $ (2,303,250) Wisconsin also paid $38,600 to a broker for arranging the transaction. In addition, Wisconsin paid $42,000 in stock issuance costs. Badger's equipment was actually worth $759,500, but its patented technology was valued at only $318,500. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Accounts Amounts a. Net income. b. Retained earnings, 1/1/17. c. Patented technology. d. Goodwill. e. Liabilities. f. Common stock. g. Additional paid-in capital. On June 30, 2017, Wisconsin, Inc., issued $358,600 in debt and 17,500 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 $ (1,021,000) 692,000 Badger $ ( 411,000) 223,000 Revenues Expenses Net income ( 329,000) (188,000) (888,000) ( 329,000) Retained earnings, 1/1 (228,000) (188,000) Net income Dividends declared 114,750 Retained earnings, 6/30 $ (1,102,250) (416,000) 127,000 267,000 345,000 614,000 Cash 142,250 Receivables and inventory Patented technology (net) Equipment (net) 434,000 940,000 787,000 Total assets $ 2,303,250 $ 1,353,000 Liabilities Common stock Additional paid-in capital Retained earnings (571,000) (360,000) (270,000) (1,102,250) ( 467,000) (200,000) (270,000) (416,000) $ (1,353,000) Total liabilities and equities $ (2,303,250) Wisconsin also paid $38,600 to a broker for arranging the transaction. In addition, Wisconsin paid $42,000 in stock issuance costs. Badger's equipment was actually worth $759,500, but its patented technology was valued at only $318,500. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Accounts Amounts a. Net income. b. Retained earnings, 1/1/17. c. Patented technology. d. Goodwill. e. Liabilities. f. Common stock. g. Additional paid-in capital.

Answer rating: 100% (QA)

The problem above wants to determine the consolidated balances of the following accounts Below are t... View the full answer