Answer:
The price should be recorded as $167,500
Explanation:
As per the accounting principles, assets should be recorded at the price they were paid for. In case of a purchase, the accountant should record in the books the amount the company paid to acquire the asset. For sales, the amount received from the buyer is the figure to be recorded in the books.
For Reliable Repair Service, there were different prices quoted, but the buyer paid $167,500. It means the company sold the land for $165,000. This is the amount that should be recorded in the books.
First off, the lenders were simply in a position to do so. Secondly, there was an incredible amount of risk involved in loans to pilgrims. Early settlers had numerous obstacles to overcome, such as harsh winters, poor crop yields and the voyage alone to the new world was extremely risky. Dead people cannot pay debts, but those who lived on could. The high risk resulted in high interest rates.
Answer:
C. Interest Expense account is increased; the Interest Payable account is increased.
Explanation:
A secured interest can be defined as a legal right granted by a borrower to a lender (creditor) over a collateral (the borrower's property) which permits or allow the lender to have a right to possess the property as soon as the lender defaults in making payment. The payment which is expected to be made by the borrower of a mortgage loan is considered a secured obligation because it is a lien or an enforceable legal claim.
When interest is accrued on a note payable, but not paid, the Interest Expense account is increased; the Interest Payable account is increased.
Answer:
a. First set of entries:
Debit: Accounts receivable with $2,000
Credit: Bad debt expenses with $2,000
b. Second set of entries:
Debit: Cash with $2,000
Credit: Account receivables $2,000
Explanation:
These entries will appear as follows in the book Gideon Company on July 10:
Details DR ($) CR ($)
Accounts receivable 2,000
Bad debt expenses 2,000
<em>Being the transfer of the bad debt recovered back to the accounts receivable.</em>
Cash 2,000
Account receivables 2,000
<em>Being the cash income received in respect of bad debt recovered.</em>
Answer:
Intervene to protect the nature and the environment: government has to play an active role in preserving the nature from the industrial activities.
Protection of consumers and customers from malicious business activities.
Establishing a proper legal framework for the enterprises to operate under a healthy competition.
Establishing required antitrust laws to prevent unjust monopolies from taking over industries.
To enact labour laws and necessary regulations to regulate the labour market.
Explanation:
