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Delowore Corp. issued a 10%, two-year, $500,000 note paying annual interest each December 31 on 1/1/19 to Colorado Corp. in exchange for $500,000 of merchandise. Question: What account will Delaware DEBIT upon this issue of a note payable? 1. inventory 2. cost of goods sold 3. supplies expense 4. notes receivable QUESTION 2 Delaware is unable to make the December 31, 2019 interest payment Delaware is a calendar year company and accrued the 2019 interest SETTLEMENT On 1/1/20 Delaware agrees to transferland ond a building to Colorado in full settlement of the note Land Builders FMV 1/1/20 $100,000 $250.000 Original cost to Delaware 75.000 300,000 Accumulated Depreciation thru 1/1/20 100,000 Book Value 1/1/20 75,000 200,000 Question: What is the incremental impact on earnings for Delaware from the settlement? QUESTION 3 Question: Regarding the information in question no 2 above, what is the incremental impact on Colorado's net income from the settlement? Delowore Corp. issued a 10%, two-year, $500,000 note paying annual interest each December 31 on 1/1/19 to Colorado Corp. in exchange for $500,000 of merchandise. Question: What account will Delaware DEBIT upon this issue of a note payable? 1. inventory 2. cost of goods sold 3. supplies expense 4. notes receivable QUESTION 2 Delaware is unable to make the December 31, 2019 interest payment Delaware is a calendar year company and accrued the 2019 interest SETTLEMENT On 1/1/20 Delaware agrees to transferland ond a building to Colorado in full settlement of the note Land Builders FMV 1/1/20 $100,000 $250.000 Original cost to Delaware 75.000 300,000 Accumulated Depreciation thru 1/1/20 100,000 Book Value 1/1/20 75,000 200,000 Question: What is the incremental impact on earnings for Delaware from the settlement? QUESTION 3 Question: Regarding the information in question no 2 above, what is the incremental impact on Colorado's net income from the settlement