What accounting method was used to account for the merger of Continental and United? What are the reporting implications? In your opinion was this a successful merger? Which company do you think gained the most benefit? Why.

P14.12 (LO 5) (Debtor/Creditor Entries for Continuation of Troubled Debt) Daniel Perkins is the sole shareholder of Perkins Inc., which is currently under protection of the U.S. bankruptcy court. As a “debtor in possession,” he has negotiated the following revised loan agreement with United Bank. Perkins Inc.'s $600,000, 12%, 10-year note was refinanced with a $600,000, 5%, 10-year note.

Instructions

1.     What is the accounting nature of this transaction?
2.     Prepare the journal entry to record this refinancing:

1.    On the books of Perkins Inc.
2.    On the books of United Bank.

3.     Discuss whether generally accepted accounting principles provide the proper information useful to managers and investors in this situation.

Please show how the amount to multiply $600,000 is determined.

1. The three fifth compromise

1. Declared that the state would pay three-fifths of the Revolutionary War debt and the federal government would pay the rest.
2. Determined that three out if every fiver slaver would be counted for purposes of representation and taxation.
3. Determine the ratio between free states and slave states.
4. Determined that all American citizens would pay three-fifths of their incomes to the federal government in taxes every year

Consumers in Washington pay twice as much for avocado as they do for cherries. However, in California, avocados and cherries are the same price.

10. What are consumers’ budget lines in these two states? Note: avocados are on the x-axis, cherries are on the y-axis

11. If consumers in both states maximize utility, what will be true about the MRS of cherries for avocados?

+ MRS will be greater in Washington

+ MRS will be greater in California

+ MRS will be the same in Washington and California

Discussion Board 2 Prompt: Chap 18&19 How did the strong, centralized states of the second half of the seventeenth century differ from their fifteenth- and sixteenth-century counterparts? What new powers and responsibilities did seventeenth-century states take on? How might the state-building efforts of European powers in the seventeenth century have contributed to the acceleration of globalization that characterized the eighteenth and nineteenth centuries?

Go to the dollarDex website and under the tab “Tools” click on “Fund Finder”. Under “Fund
manager”, choose “UOBAM”. Then click on the “Advanced” tab and under “Payment
Currency”, select SGD.

Focus on the following four funds:
• Cash Management – UOBAM United SGD Money Market Fund – Class A1 SGD
• Equity – UOBAM United Asia Fund
• Bond – UOBAM United Asian Bond Fund
• Balanced – UOBAM Growth Path 2030

(a) For each fund, indicate the level (low, medium, high) for the risk and the return
characteristics and discuss your choice. Discuss the investment attractiveness of the
fund. Use the format below to answer your question:
Example:
(Type) Fund – (Fund Name)

(i) Risk: Low/Medium/High (choose one)
Reason: (explain using theory as well as data from the website)

(ii) Return: Low/Medium/High (choose one)
Reason: (explain using theory as well as data from the website)

(iii) Investment attractiveness
(discuss the type of economic condition for which this type of fund is most
suitable)

(b) Discuss which fund would be most suitable for a relatively young graduate who has
been working for 3 years since graduation.

Go to the dollarDex website and under the tab “Tools” click on “Fund Finder”. Under “Fund

manager”, choose “UOBAM”. Then click on the “Advanced” tab and under “Payment

Currency”, select SGD.

Focus on the following four funds:

• Cash Management – UOBAM United SGD Money Market Fund – Class A1 SGD

• Equity – UOBAM United Asia Fund

• Bond – UOBAM United Asian Bond Fund

• Balanced – UOBAM Growth Path 2030

(a)

For each fund, indicate the level (low, medium, high) for the risk and the return

characteristics and discuss your choice. Discuss the investment attractiveness of the

fund. Use the format below to answer your question:

Example:

(Type) Fund – (Fund Name)

(i) Risk: Low/Medium/High

(choose one)

Reason: (explain using theory as well as data from the website)

(ii) Return: Low/Medium/High (choose one)

Reason: (explain using theory as well as data from the website)

(iii) Investment attractiveness

(discuss the type of economic condition for which this type of fund is most

suitable)

(b) Discuss which fund would be most suitable for a relatively young graduate who has

been working for 3 years since graduation.

The following information is available for United Corporation on December 31 for the year just ended.

1. A review of the $12,000 unadjusted balance in the prepaid rent account shows a remaining balance of $8,750 at the end of the year.
2. $2,200 of the television advertising paid for in advance has been used.
3. The yearly depreciation on the building is $150.
4. The yearly depreciation on the equipment is $800.
5. $1,200 of the advertising paid for in advance has been published by the newspaper.
6. Furniture purchased in a previous year for $17,750 will be sold after ten years for $750.
7. Accrued salaries of $29,000 were not recorded at year-end.
8. Of the $7,500 consulting fees United Corporation received in advance, $6,600 has not yet been earned.
9. Interest of $1,690 has accrued on a bank loan and is unrecorded.
10. $11,500 of advertising United Corporation placed in the local newspaper is unrecorded and unpaid.

Prepare the required adjusting entries at December 31, 2014.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'.