On October 17, Nickle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nickle paid $300,000 down in cash and signed a note payable for the balance.
Prepare the journal entry for this transaction.

Please see the explanation for the journal entry

Explanation:

The journal entry that would be passed for the transaction on October 17, By Nickle company is as follows:

Building                          Dr. $500000

Land                              Dr. $250000

Cash                                                 Cr. $300000

Notes Payable                                  Cr. $450000

The value of land and building are taken separately and cash and notes payable would be credited.

answer; schedule c;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.