Answer:
Dr Land 125,000
Cr Gain on disposition of assets125,000
Dr Notes payable 600,000
Dr Interest payable 66,000
Cr Gain on troubled debt restructuring 216,000
Cr Land 450,000
Explanation:
Preparation of journal entry(s)
Based on the information given we were told that they group have agreed to settle Transit’s debt innexchange for land which have a fair value amount of $450,000 mean while the Transit purchased the land in 2017 for the amount of $325,000 which means that the Journal entry will be :
Dr Land 125,000
($450,000 – 325,000)
Cr Gain on disposition of assets125,000
Based on the information given we were told that Transit owed First City Bank Group the amount of $600,000 that has an 11% note which means that the Journal entry will be :
Dr Notes payable 600,000
Dr Interest payable 66,000
(11% x $600,000)
Cr Gain on troubled debt restructuring 216,000
Cr Land 450,000
6783$ a month I think that's the answer I hope
Answer:
a) Oligopoly
Explanation:
The oligopoly is a market structure which characterized by the presence of a few large companies producing homogeneous or differentiated products
In this market, there are few sellers plus there is also a barriers for entering the new firms in the market. Also, the prices are normally fixed in this market because due to the competitors as they are fear of price war
So in the given question, it indicated the oligopoly scenario
Answer and Explanation:
The effect of undervaluation of Inventory is shown below:-
Inventory Understated = Inventory counted + Correct value of inventory
= $545,000 - $554,000
= $9,000
Now, the effect of undervaluation of Inventory is
Cost of goods overstated by $9,000
Net income understated by $9,000
Retained earning understated by $9,000
Assets (Current assets - Inventory) understated by $9,000