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mars1129 [50]
3 years ago
8

g The Melville Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale

, $15,000 was stillowed to First National Bank on that purchase. After the sale, The Melville Company paid off the loan to First National Bank. What is the effect of thesale and the payoff of the loan on the accounting equation
Business
1 answer:
Tresset [83]3 years ago
8 0

Answer and Explanation:

The impact on the sale and the payoff the loan in an accounting equation is as follows:

But before that

The following journal entries should be recorded

Cash $60,000    

        To Land $40,000

        To Profit on sale of land $20,000

(Being the sale of the land is recorded)

Loan Dr $15,000

       To Cash $15,000

(Being the loan is paid)

Here the cash would increased by $5,000, the liabilities would decreased by $15,000 and equity would be increased by $20,000

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Answer:

The correct answer is: D) unreasonable demands

Explanation:

These are contradictory demands, whether, in themselves, they require the fulfillment of two or more contradictory or inconsistent conditions with each other, whether it is what the person who generates an internal conflict demands, the foreign demand being to go against its own essence, while the other pole is fidelity to it.

In these cases, the irrationality of the demand does not fall on the capacities, but on the being itself. In addition, its origin is always in the environment of the person.

3 0
3 years ago
Read 2 more answers
4) All of the following are true of known liabilities except:A) Include accounts payable, notes payable, and payroll.B) Are obli
Thepotemich [5.8K]

Answer: E) May depend on some future event occurring. It is not a characteristic of known liabilities.

Explanation:  Unknown or uncertain liabilities are those whose existence depends on the occurrence of a future event.

Known liabilities <u>are definitely determinable and measurable.</u>

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3 0
3 years ago
Suppose banks keep no excess reserves and that all banks are currently meeting the reserve requirement. The Federal Reserve then
ANTONII [103]

Answer:

1. Assets is debited for $10,000 as loans.

2. Liabilities is credited for $10,000 as deposits.

Explanation:

Note: This question is not complete as the amount is omitted. The complete question is therefore presented before answering the question as follows:

Suppose banks keep no excess reserves and that all banks are currently meeting the reserve requirement. The Federal Reserve then makes an open market purchase of ​$10000 from Bank 1.

Use the​ T-account below to show the result of this transaction for Bank​ 1, assuming Bank 1 keeps no excess reserves after the transaction.

The explanation of the answer is now given as follows:

Note: See the attached photo for Bank 1's T-Account.

In the attached photo, we can see that:

1. Assets is debited for $10,000 as loans.

2. Liabilities is credited for $10,000 as deposits.

6 0
3 years ago
One of the most important features of a filing and record keeping system is that it works for you and meets your needs true or f
MA_775_DIABLO [31]

Answer:

True

Explanation:

In record keeping using the filling method, it is done in-order to keep track of all the important documents and information regarding to the company. <em>This record keeping system could employ the manual method or writing with hand or the electronic method of storing such information using the computer or other electronic device.</em>

7 0
3 years ago
In a fractional-reserve banking system with no excess reserves and no currency holdings, if the central bank buys $100 million w
NARA [144]

Answer:

c. reserves increase by $100 million and the money supply increases by more than $100 million

Explanation:

Based on the information given in a situation where a FRACTIONAL-RESERVE BANKING SYSTEM has no availability of EXCESS RESERVES and no CURRENCY HOLDINGS, which means that if the central bank buys BONDS that worth $100 million, the RESERVES will tend to INCREASE by the amount of $100 million while the MONEY SUPPLY on the other hand will INCREASES by more than $100 million.

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3 years ago
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