Answer:
A. Increase liabilities (Accounts payable) by $337.8 million
Explanation:
The journal entry will be: Inventory (Credit - Increased) 337,860,000 and Accounts payable (Debit - Increased) 337,860,000.
The company must recognize the increase in the Inventory and the medium of payment (Accounts payable).
B is false because this operationn can also be a decrease in cash, but the amount in the operation is too high for this payment medium.
C is false because, the inventory is not sold, and COSG will be increased when the goods are sold.
D is also false because the inventory is increasing, not decreasing.
Answer: c. Is equal to the market value of the land
Explanation:
When deciding the cost of using an asset such as land for something, the best cost to use is the opportunity cost of the land. What would the US Government be doing with the land if they were not turning it for use for the black-tailed prairie doga.
As there are no other alternatives, this cost will therefore be the market value of the land because this is the amount that the Government could get for the land if they sold it instead of using it for the black-tailed prairie doga.
Answer:
$160000
Explanation:
Below is the calculation for the amount that should be recorded.
The actual value of building = $150000
Number of shares = 10000 shares
The stock is traded at the price = $16 per shares
The Kansas company should record the amount of building = total share x Sell price
The Kansas company should record the amount of building = 10000 x 16
The Kansas company should record the amount of building = $160000 (fair market value or price of shares)
The answer to this question will be A
Answer:
(A)
cash 85,000
unearned revenues 85,000
(B)
unearned revenues 40,000
subscroption revenues 40,000
Explanation:
(A)
Unearned revenues are a liability. It increases from the credit, so in this entry, we increased cash by the amount received and also increase unearned revenue for 85,000
WHY ARE LIABILITIES?
The payment made by customer in-advance generates an obligation to the NYT. The journal is forced to deliver their newspaper to these people, it has an obligation, which is certain and quantifiable in dollars, that fits in the definition of liabilities.
(B)
HOW UNEARNED BECOME EARNED?
Once time past AKA newspapers are delivered, the obligation decrease and part of the annual subscription become revenues
