Ignoring GST, Which of the Following Entries Correctly Records the Purchase

question 21

Multiple Choice

Ignoring GST, which of the following entries correctly records the purchase of land for $300 000 financed by a $100 000 cash deposit with the balance payable via a 20-year, 6% loan?

• A) DR Land $100 000; CR Bank $100 000
• B) DR Land $300 000; CR Bank $300 000
• C) DR Land $300 000; CR Bank $100 000; CR Loan $200 000
• D) DR Land $300 000; CR Loan $300 000

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Definitions:

GATT

GATT, or the General Agreement on Tariffs and Trade, was a legal agreement created in 1947 to minimize barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations.

International Migration

The movement of individuals across national borders for the purpose of settling in a new country, either temporarily or permanently.

World Output

The total value of all goods and services produced across the globe.

Illegal Immigrants

People who have entered a country unlawfully to reside there; also called unauthorized immigrants.