Question

On June 30, 2017, Wisconsin, Inc., issued $109,300 in debt and 22,800 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 $ (1,001,000) $ (428,0ee) Expenses 741,000e 297,000 $(131,000) $ (277,000) Net income $ (260,000) Retained earnings, 1/1 Net income Dividends declared $ (815,000) (260,000) 103,508 $ (971,500) (131,000) Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) $ (408,000) $ 122,000 172,000 321,000 637,000 $62,500 463,000 927,000 728,000 $ 2,180,500 $1,252,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings $ (579,000) (360,000) (270,000) $ (374,000) (200,000) (270,000) 408,000 971,500e Total liabilities and equities $ (2,180,500) $ (1,252,000)

Answer 1

Consolidated Balances: