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3 years ago

Determine allison's december 31, 2018, investment in mathias balance.

1 answer:

4 0

Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2017, in exchange for $6,059,500 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,045,000 including retained earnings of $1,545,000

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All sales are made on credit. Based on past experience, the company estimates 2.5% of ending account receivable to be uncollecti

Misha Larkins [42]

Answer:

Debit Bad Debts Expense $12,475

Credit Allowance for Doubtful Accounts $12,475

Explanation:

Calculation for estimated bad debts expense:

Explanation

Accounts receivable * Sales uncollectible

$445,000×0.025

=11,125

Hence:

11,125 +Allowance for Doubtful Accounts 1,350

=$12,475

Therefore the estimated bad debt will be:

Debit Bad Debts Expense $12,475

Credit Allowance for Doubtful Accounts $12,475

4 0

3 years ago

Four months ago, you purchased 1,300 shares of lakeside bank stock for $23.32 a share. you have received dividend payments equal

Marina CMI [18]

<span>If I purchased 1,300 shares of lakeside bank stock for $23.32 a share. The total worth of the share is 1, 300 * 23.32 = $30, 316. Okay I received payments dividend worth 0.61 a share; that becomes 0.61 * 23.32 = $14.2252. I sold 1, 300 shares for $24.32. So I sold it for 1, 300 * 24.32 = $31616. My total return = (Amount I sold the share + dividend received) - Amount I bought the share. So we have (31616 + 14.2552) - 30316 = $31630.2552 - $ 30, 316 = $1314.2552</span>

7 0

2 years ago

On January 1, 20X4, Polar Corp. paid $104,000 for $100,000 par value, 9% bonds of Seal Corp. Seal had issued $300,000 of the 10-

Eddi Din [679]

Answer:

$14,000

Explanation:

Amount of interest expense = [(Bond issued by 'S' company x 9%) - Amount of

premium x (unsold bonds / Bonds issued)]

= (300,000 x 0.09) - 60000/10 x 200,000/300,000

= (27,000 - 6000) x 0.66667

= 21,000 x 0.66667

= $14,000

7 0

3 years ago

Italian Stallion has the following transactions during the year related to stockholders’ equity. February 1 Issues 5,000 shares

bixtya [17]

Answer:

The Journal entries are as follows:

(a) On Feb 1,

Cash A/c (5,000 × $15) Dr. $75,000

To common stock $75,000

(To record the issue of shares)

(b) On May 15,

Cash A/c (500 × $12) Dr. $6,000

To Preferred stock (500 × $10) $5,000

To Paid in capital in excess of par $1,000

(To record the issue of preferred shares)

Dividend Expense A/c (5,500 × $0.75) Dr. $4,125

To Dividend Payable $4,125

(To record the declaration of dividend)

(d) On Oct 15,

No Journal entry would be passed.

(e) On Oct 31,

Dividend Payable A/c Dr. $4,125

To cash $4,125

(To record the payment of dividend)

5 0

2 years ago

Wholesale insurance brokers (also called excess and surplus lines brokers) are intermediaries between:

valina [46]

Answer:

3. an insurance agent and an insurance company

Explanation:

Insurance simply means protection from financial loss.

Types of insurance are:

1. Property insurance

2. Life or personal insurance

3. Marine insurance

4. Fire insurance

5. Liability insurance

6. Social insurance

7. Guarantee insurance

Insurance Agents are people that work for insurance companies to reach out to new and existing customers to sell insurance. An insurance agent acts as an intermediary between an insured and the marketplace

An insured means a person or organization covered by insurance. They are like consumers.

Insurance company (insurer) is a business that provides coverage, in the form of compensation resulting from loss, damage or injury, treatment or hardship in exchange for premium payments.

Wholesale Broker is a type of insurance broker who acts as an intermediary between a retail broker (insurance agent ) and an insurer while having no contact with the insured

6 0

3 years ago