ABC Company bought some land with a price of $50,000 by making a $10,000 down payment and owing the rest. The journal entry would include: Group of answer choices $40,000 debit to land $50,000 debit to land $50,000 credit to land $10,000 debit to land

ABC Company bought some land with a price of $50,000 by making a $10,000 down payment and owing the rest. The journal entry would include: Group of answer choices $40,000 debit to land $50,000 debit to land $50,000 credit to land $10,000 debit to land

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 6CDQ: Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an...

See similar textbooks

Related questions

Q: Where, in a business's financial statements, in accordance with International Financial Reporting…

A: The financial statements of the business includes the income statement, balance sheet and cash flow…

Q: Mar. 3) The company made credit purchases of office equipment for $5,900 and office supplies for…

A: Journal entries recording is initial step of accounting cycle process, under which atleast one…

Q: Micro Limited has shown a prepaid rent balance of $8,000 under current assets in their balance…

A: Deffered Tax :— Deferred tax is a notional asset or liability to reflect corporate income taxation…

Q: 5. Find the cost of 125 men's sults at $310.15 each and 14 dozen ties at $4.25 each. 6. A total of…

A: Cost :— It is calculated by multiplying units with manufacturing cost per unit. Units Unsold :—…

Q: A logistics firm is planning to acquire a winching machine which costs $85000 having life span of 6…

A: Cost of Capital :— Cost of capital represents the return a company needs to achieve in order to…

Q: 28. As of January 1, 20Y5, Tippy Cup Co. had a balance of $15,000 for raw materials inventory. The…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A financial statement to show what a business owns and owes at a particular ?point in time The bank…

A: Financial records and financial statements preparation is important output of financial accounting…

Q: Which of the following is true about plan assets? Any excess return on plan assets are earned to…

A: Plan assets refer to the form of assets that are held onto by the owner for long-term employee…

Q: On November 30 JT's Consulting Services paid Office Plus $5,000 in partial ?payment of Invoice 2223,…

A: When inventory is purchased on credit , accounts payable is credited and inventory account is…

Q: Creg works as an agent for a number of smaller contractors, earning commission of 10%. Creg’s…

A: Lets understand the basics. Journal entry is required to make to record transaction or event that…

Q: Gabi Gram started The Gram Company, a new business that began operations on May 1. The Gram Company…

A: The income statement shows the net income or net loss calculated by deducting expenses from the…

Q: 5:31 Done FM 1 CHAPTER 3 EXERCISES Illustration: 3 From the following particulars of AVS LLC., for…

A: Income statement is one of the financial statement which shows all incomes and all expenses and at…

Q: The following events took place for Sorensen Manufacturing Company during January, the first month…

A: Income statement is a financial statement. It is prepared at the end of accounting period. It is…

Q: Entry for Factory Labor Costs A summary of the time tickets is as follows: Job No. Amount 100 $3,350…

A: JOURNAL ENTRY: It is the record of all financial transactions of a business. It is the second step…

Q: Kiyara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiyara does…

A: Answer:- S corporation meaning:- For the purposes of federal taxation, S companies are businesses…

Q: Accounting standard IAS16: Property, Plant and Equipment make a number of recognition, measurement…

A: Every organization uses assets to conduct business and manufacture products such as Machinery,…

Q: How much is the share premium and acquired fair value of Net assets ?

A: Given in the question: Fair value of the V company’s equity instrument = 2030 per share Fair value…

Q: On November 10 JT's Consulting Services purchased office equipment on ?account for $12,000. Which…

A: While purchasing assets , cash or creditors/accounts payable arises with regard to payment option…

Q: Badgersize Company has the following information for its Forming Department for the month of August.…

A: The work-in-process inventories at the conclusion of an accounting cycle are generally referred to…

Q: The net income reported on the income statement for the current year was $310,000. Depreciation…

A: Cash flow statement includes: Cash flows from operating activities Cash flows from investing…

Q: Goodway Corporation sold $100,000 worth of bonds to raise money for plant expansion.…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: Compute the additional tax due or refund they have when filing their tax return.

A: It has been given in the question that the withholding tax has been $11,000 and there is a gross tax…

Q: Which of the following shows how purchasing supplies for cash will affect a company's financial…

A: Financial statements are the final statements which are prepared at the end of the period in order…

Q: On January 1, 2020, the dental partnership of Angela, Diaz, and Krause was formed when the partners…

A: Capital balances of partners are the amounts that partners have, in the firm as their capital. It is…

Q: Mar. 9) The company completed a $10,400 project for a client, who must pay within 30 days. Note:…

A: Lets understand the basics. Journal entry is required to make to record event and transaction that…

Q: 1. The imputed interest rules apply to which of the following type of loan? a.Coercion-related…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An accountant for a corporation forgot to pay the firm's income tax of $725,769.12 on time. The…

A: Income Tax :— It is tax levied by goverment directly on their citizens. Penalty on income tax :—…

Q: Statement of cash flows A summary of cash flows for A-One Travel Service for the year ended August…

A: The financial statements of the business are prepared using the adjusted trial balance. The cash…

Q: Journalize the purchase of a truck on April 4 for $71,980, paying $5,500 cash and giving a note…

A: Requirement # :— Journalisation Journal Entry In the Books of XYZ For the month of April…

Q: * ?A financial statement that summarizes company revenue and expenses is Income statement Cash flow…

A: A financial statement seems to be a statement that shows the profitability, consistency, and…

Q: The following facts are given regarding a sole proprietor transferring the assets of his business to…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Balance…

Q: The Tayler Hiro Merchandising has the following trial balance as of January 1, 2019. Account Titles…

A: Normal net profit and other comprehensive income are both summarised in the financial statement…

Q: The Jones Tire Company assembles two types of tires (truck tires, and car tires). Separate assembly…

A: The costs are classified as direct and indirect costs or variable and fixed cost. The direct costs…

Q: 2. In a partnership, a partner who is unknown to the other part- ners, yet participates in the…

A: Partnership is one of the form of business organisation, under which two or more than two persons…

Q: Long term borrowings Property, plant & equipment Trade and other payables Current portion of…

A: Statement of financial position is a statement which list down the balances of assets , liabilities…

Q: In the current year, John, Tara, and Sean form Corporation. John contributes land (a capital…

A: Recognized Gain or Loss - It is the amount of profit/loss you make from selling particular assets.…

Q: Problem 3. Mala Prohibita Inc. is evaluating a proposal to acquire a new equipment. The equipment…

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows) IRR is a rate at…

Q: Selected data about Pitkin Company's manufacturing operations at two levels of activity are given…

A: Variable Cost :— Under the Marginal Costing System Variable Cost is a Cost which is Varry Per unit.…

Q: What accounts go on the closing journal? Can someone provide an example for a visual?

A: At the conclusion of an accounting cycle, closing entries are performed to move amounts from a…

Q: * ?Paid $7,000 for salaries. Which account is credited Supplies Cash Equipment O Salaries Expense O

A: Golden Rules of Accounting : Personal Accounts Real Accounts Nominal Accounts Debit the…

Q: Prepare a 2018 balance sheet for Rogers Corp. based on the following information: Cash $490,000;…

A: Common Stock - Common Stock is the shares issued to the shareholders. There are two types of stock…

Q: The financial statements of Calloway Company prepared at the end of the current year contained the…

A: The balance sheet shows the financial position of the company. It includes assets, liabilities, and…

Q: Pacific Gas and Electric Company is a large gas and electric utility operating in northern and…

A: Lets understand the basics. For calculating earning per share, we need to use below formula. Earning…

Q: At the start of the year, Kylie’s time deposit has a balance of 250,000. At the end of the year, the…

A: Return on Deposit :— The returns on Fixed Deposits are the fixed interest that you get for investing…

Q: When a business provides services for cash, what is the effect on the accounting equation are…

A: When a business provides services for cash, cash is increased and revenues are increased. Revenues…

Q: Briefly explain three popular methods of valuing stock and state the effect of each method on…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Account Number (1) (2) (3) (4) (5) (6) (7) (8) Account Title Common Stock Salaries Payable Retained…

A: Financial statements are those statements which shows three statements named as balance sheet, cash…

Q: Zimmerman Company sold land for $25,000 cash. The original cost of the land was $25,000. Which of…

A: Horizontal Financial Statement Model - This model expresses the Financial Statement in the…

Q: Depreciation by different methods, and sale of a fixed asset…

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: Pan Shoe Inc., sells luxury shoes. On May 15h, Pan Shoe Inc., purchased $250 of in account. The…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

ABC Company bought some land with a price of $50,000 by making a $10,000 down payment and owing the rest. The journal entry would include:

Group of answer choices

$40,000 debit to land

$50,000 debit to land

$50,000 credit to land

$10,000 debit to land

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreenwnt, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?
Intel purchases land. Information related to this transaction is following: Purchase cost of land $ 180,000 Property taxes due on the land 5,000 Title and attorney fees 2,000 Cost of cleaning the land 4, 400 Cost of paving a parking lot 20, 000 Sales taxes on the transaction 1, 000 What amount does Intel record as the cost for the land? Group of answer choices $187, 400 $192, 400 $211, 400 $180,000
Carey Company buys land for $50,000 on 12/31/13. As of 3/31/14, the land has appreciated in value to $50,700. On 12/31/14, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2014?
Blossom Clinic purchases land for $450000 cash. The clinic assumes $4000 in property taxes due on the land. The title and attorney fees totaled $3200. The clinic had the land graded for $6100. What amount does Blossom Clinic record as the cost for the land?
Sandhill Co. purchases land for $130000 cash. Sandhill assumes $5600 in property taxes due on the land. The title and attorney fees totaled $2700. Sandhill has the land graded for $4400. They paid $21000 for paving of a parking lot. What amount does Sandhill record as the cost for the land?
A vacant lot is acquired for $83,000 cash. Later the owner borrows $52,000 against the land. Three years later, the lot is then sold for $127,000 in cash. After receiving the $127,000 sales price in cash, the seller pay off the loan of the $52,000 owed. What is the effect of the $52,000 payment of the loan on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity? Assets increase $127,000; liabilities decrease $52,000; Stockholders’ equity increases $44,000 The payment of the loan has no net effect on any of the categories Assets decrease $52,000; liabilities decrease $52,000; Stockholders’ equity increases $44,000 Assets decrease $52,000; liabilities decrease $52,000; Stockholders’ equity is unchanged
Carla Vista Wholesale Motor Company purchases land for $215000 cash. Carla Vista assumes $5200 in property taxes due on the land. The title and attorney fees totaled $2900. Carla Vista has the land graded for $3500. They paid $21000 for paving of a parking lot. What amount does Carla Vista record as the cost of the land?
a. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity?b. Assume that the seller owes $80,000 on a loan for the land. After receiving the $298,000 cash in (a), the seller pays the $80,000 owed. What is the effect of the payment on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity?c. Is it true that a transaction always affects at least two elements (Assets,Liabilities, or Owner’s Equity) of the accounting equation? Explain.
Identify the letter for the principle or assumption from A through F in the blank space next to situation that it best explains or justifies: _________If $51,000 cash is paid to buy land, the land is reported on the buyer’s balance sheet at $51,000.
Hani Enterprise purchased a piece of land, a shoplot and some equipment for RM4,000,000. The cost value of the land was RM1,700.000, the building RM1,350,000 and the equipment RM950,000. What is the amount being debited to the Land Account when the purchase is recorded? a. RM1,700,000 b.RM4,000,000 c.RM3,100,000 d.None of the above
On January 1, Duane Company purchases land at a cost of $125,000. Duane incurs costs of $2,000 for the closing fees and surveys. Duane also spent $7,500 on clearing costs to prepare the land for use. What is the cost of land to be recorded by Duane?
A company bought a land for $5m. One year later, a buyer is willing to pay $4m for the land. The valuation of the land by a certified professional valuer is $3.8m. A comparable piece of land is selling for $3.9m. What is the impairment loss?