Acc407 Advanced Accounting: P2-17 On June 30, 2011, Wisconsin, Inc., issues $300,000 in debt

Acc407 Advanced Accounting

P2-17
On June 30, 2011, Wisconsin, Inc., issues $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-moth period ending June 30,2011, were as follows:
Wisconsin Badger
Revenues (900,000) (300,000)
Expenses 660,000 200,000
Net income $ (240,000) $(100,000)
Retained earnings, 1/1 (800,000) (200,000)
Net income (240,000) (100,000)
Dividends paid 90,000 -
Retained earnings, 6/30 $(950,000) $(300,000)
Cash 80,000 110,000
Receivables and inventory 400,000 170,000
Patented technology (net) 900,000 300,000
Equipment (net) 700,000 600,000
Total assets $2,080,000 $1,180,000
Liabilities (500,000) (410,000)
Common Stock (360,000) (200,000)
Additional paid-in capital (270,000) (270,000)
Retained earnings (950,000) (300,000)
Total liabilities and equities $(2,080,000) $(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.
What are the consolidated balances for the following accounts?
a. Net Income
b. Retained Earnings, 1/1/11
c. Patented Technology
d. Goodwill
e. Liabilities
f. Common stock
g. Additional paid-in capital
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