First, explain the three types of mergers. Next, give an example of a recent merger and select the merger type.

Ede4ka [16]

The answer is B. Financially protect against unexpected accidents

3 0

3 years ago

Mocha Company earned net income of $ 95 comma 000 during the year ended December 31, 2018. On December 15, Mocha declared the

ArbitrLikvidat [17]

Answer:

a) Debit Retained Earnings with $139,500

Credit Dividends Payable Account: Preferred Stock $108,000

Credit Dividends Payable Account : Common Stock $31,500

Being Dividends declared on December 15, 2018.

b) Debit Dividends Payable Account: Preferred Stock $108,000

Debit Dividends Payable Account: Common Stock $31,500

Credit Cash Account $139,500

Being Cash payments for dividends on January 4, 2019.

NB: Common stock dividends = $0.75 of 42,000 common stock outstanding, i.e. $31,500.

Explanation:

Cash Dividends are declared by the Board of Directors as returns or distributions to shareholders from earnings. They are made for their investments in the company as a form of compensation.

When cash dividends are declared, the entries required are to reduce the amount of the retained earnings while creating a dividends payable account.

When the cash dividends are paid, the dividends payable account is debited and cash account is credited to show the effect of the settlement.

4 0

4 years ago

During 2016, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building:

Colt1911 [192]

Answer:

$64,000 and $358,000

Explanation:

The computation is shown below:

For land:

= Purchase price of land + Legal fees for contracts to purchase land + Demolition of old building on site - Sale of scrap from old building

= $60,000 + $2,000 + $5,000 - $3,000

= $64,000

For building:

= Construction cost of new building (fully completed) + Architects’ fees

= $350,000 + $8,000

=$358,000

8 0

4 years ago

Marigold Manufacturing uses a flexible budget. It has the following budgeted manufacturing costs for 25800 pairs of shoes: Fixed

olasank [31]

Answer:

$231,200

Explanation:

The computation of the total budgeted manufacturing cost is shown below:

= Fixed Manufacturing Costs + Variable Manufacturing Costs per pair of shoes × number of shows made this month

= $12,300 + $11 × 19,900 shoes

= $12,300 + $218,900

= $231,200

We simply added the Fixed Manufacturing Costs and variable manufacturing cost so that the exact value might arrive.

3 0

3 years ago

The ABC partnership had net income of $100,000 for 20X9. They allocate profits and losses in the ratio 5:3:2. After closing the

Ad libitum [116K]

Answer:

The journal entry would be passed as the accounts are closed, which is shown below:

Explanation:

As the books are closed, then the correction would be made against the capital accounts of the partners. And the following Journal entry would be made as:

Land A/c................................Dr $30,000

A's Capital A/c..................Cr $15,000

B's Capital A/c..................Cr $9,000

C's Capital A/c..................Cr $6,000

Working Note:

The amount of land is to be proportionate as the ratio of the partners which is computed as:

A's Capital A/c = Land amount × Ratio of A / Sum of ratios

= $30,000 × 5 / 10

= $15,000

B's Capital A/c = Land amount × Ratio of A / Sum of ratios

= $30,000 × 3 / 10

= $9,000

C's Capital A/c = Land amount × Ratio of A / Sum of ratios

= $30,000 × 2 / 10

= $6,000

6 0

3 years ago