Answer:
The Journal entries are as follows:
(i) On March 1,
Cash A/c Dr. $297,500
To common stock (42,500 × $4) $170,000
To paid in capital in excess of par value $127,500
(To record the issuance of common stock)
(ii) On April 1,
Cash A/c Dr. $70,000
To common stock $70,000
(To issue no-par value common stock)
(iii) On April 6,
Inventory A/c Dr. $45,000
Machinery A/c Dr. $145,000
To common stock (2,000 × $25) $50,000
To paid in capital in excess of par value $46,000
To Note payable $94,000
(To record the issuance of common stock)
Answer:
D) Yes, because the nephew holds a fee simple defeasible.
Explanation:
Since the nephew holds a simple fee defeasible, he can use Blackacre as he pleases as long as he is alive. Since his former wife (Alice) died, then after his death Blackacre will pass to the county hospital, but as long as he is still alive, he can extract gold from Blackacre.
Answer:
The journal entry to record the sale :
Debit : Note Receivable $120000
Credit : Sales Revenue $120000
Explanation:
The journal entry to record the sale includes a Debit entry of a Note Receivable at the amount owed by the customer since there was no immediate payment of cash and a Credit entry of Sales Revenue to recognize Income earned.
A) increase the efficiency of gift-giving because they allow the recipient to consume goods that provide greater utility and transfer away those goods that are less satisfying.
Utility is the satisfaction that a consumer gets from a good or service, and picking the items that they want themselves provides the best efficiency of choosing goods.
