[The Following Information Applies to the Questions Displayed Below

question 93

Multiple Choice

[The following information applies to the questions displayed below.]
The bookkeeper for Wood Mfg.made the following journal entry on January 30,2018:

-This transaction involves:

• A)The sale of land and building for $286,000.
• B)Payment of $221,000 on a note payable.
• C)The receipt of $65,000 cash.
• D)An increase in liabilities of $221,000.

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Definitions:

Paper Company

A business entity created, often in a tax haven, for the purpose of managing investment or conducting transactions without engaging in operational business activities.

Interest Calculation

The process of determining the amount of interest earned or paid on a financial instrument or account, based on the principal, the rate, and the time.

Fair Value

The price that would be received for an asset if it were sold today.

Face Value

The face value or monetary amount shown on a financial document, like a bond or share certificate.