Jaye Company Purchased a New Building by Signing a Note

question 57

Multiple Choice

Jaye Company purchased a new building by signing a note for $21,000. The entry to record the transaction is:

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Definitions:

Fixed Amount

A specific sum of money that does not change or vary under specified conditions.

Gratuitous

Provided without requiring anything in return; given freely or without charge.

Service

The provision of assistance or professional work performed for another person or organization.

Quantum Meruit

A legal principle meaning "as much as he has deserved," used to determine the amount of compensation due for services provided when there is no existing contract.