Assume that the accounts receivable (in millions) were $1,308 at the beginning of

How would the issuance of common stock for cash affect the accounting equation?

shepuryov [24]

Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

To Common stock A/c XXXXX

(Being the issuance of the common stock is recorded)

The accounting equation is

Total Assets = Total liabilities + Stockholder equity

Cash Increased = No effect + Increased

Therefore, the cash account and the common stock is increased.

3 0

3 years ago

At December 31, 2019, Skysong Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,966

Fittoniya [83]

Answer:

Earnings per share from continuing operations is $3.41 per share.

Earnings per share from discontinued operations is -$0.53 per share.

Explanation:

The earnings per share data can be computed by preparing a partial income statment as follows:

Skysong Corporation

Income Statement (Partial)

As at December 31, 2019

Particulars Amount ($)

Continuing operations

Income from continuing operations before taxes 22,887,900

Taxes on continuing operations (22,887,900 * 35%) (8,010,765)

Income from continuing operations after taxes 14,877,135

Preferred dividends declared (1,089,660)

Income from continuing operations after pref. div. 13,787,475

Discontinued operations

Discontinued operations (loss before taxes) (3,284,900)

Tax benefit on discontinued oper. (3,284,900 * 35%) 1,149,715

Discontinued operations (loss after taxes) (2,135,185)

Earnings per share:

Continuing operations (13,787,475 / 4,044,060) 3.41

Discontinued operations (2,135,185 / 4,044,060) (0.53)

5 0

2 years ago

There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, a

Delicious77 [7]

Answer: a. The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers.

Explanation:

A merger occurs when two companies comes together and becomes one. This is done in order to expand the recah of a company, gain a market share, and also expand into new segments.

The plausible reasons for the limited impact of the merger will be because the merger will lead to the operation at a higher capacity which will ensure that there's cost reduction through economies of scale which will be beneficial to the consumers.

7 0

3 years ago

The board of commissioners of the City of Hartmoore adopted a General Fund budget for the year ending June 30, 2017, that includ

Aleks04 [339]

Answer:

The Journal entry at the beginning of the year is as follows:

Estimated revenue A/c Dr. $1,342,500

Estimated other financing sources-Bonds proceeds A/c Dr. $595,000

To Appropriations control $960,000

To Appropriations-Other financing uses-operating transfer outs $532,500

To Budgetary fund Bal. $445,000

(To record entry at the beginning of the year)

8 0

3 years ago

Under a _____ exchange rate regime, a country will attach the value of its currency to that of a major currency.

bija089 [108]

The answer should be pegged

7 0

3 years ago