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Setler79 [48]
3 years ago
5

In a merger: a. two firms combine to create a third separate entity. b. one firm breaks into two firms. c. one firm buys control

ling interest in another firm. d. two firms agree to integrate their operations on a relatively coequal basis.
Business
1 answer:
kolezko [41]3 years ago
7 0

Answer:

d. two firms agree to integrate their operations on a relatively coequal basis

Explanation:

In a merger: two firms agree to integrate their operations on a relatively coequal basis.

Two firms are said to have merged when they agree to integrate or combine their operations on a relatively coequal basis

A merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity. <u>The firms that agree to merge are roughly equal in terms of size, customers, scale of operations, etc.</u>

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a. Dr Cash 17,500

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Cr Cash 1,150

f. Dr Dividend 1,800

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g. Dr Automobile expense 1,500

Dr Miscellaneous expense 400

Cr Cash 1,900

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Cr Cash 2,800

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Cr Supplies 1,050

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Preparation of Journal entry

a. Dr Cash 17,500

Cr Common Stock 17,500

b. Dr Supplies 2,300

Cr Account payable 2,300

c. Dr Cash 13,300

Cr Sales commission 13,300

d. Dr Rent expense 3,000

Cr Cash 3,000

e. Dr Account payable 1,150

Cr Cash 1,150

f. Dr Dividend 1,800

Cr Cash 1, 800

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Dr Miscellaneous expense 400

Cr Cash 1,900

(1,500+400)

h. Dr Salaries expense 2,800

Cr Cash 2,800

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Cr Supplies 1,050

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Answer:

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