Question 1.

Question 2.

On November 1, Year 1, Salem Corporation sold land priced at $540,000 in exchange for a 6%, six-month note receivable. Salem's balance sheet at December 31, Year 1, includes which of the following as a result of the sale of land on November 1 ? Multiple Choice Notes Receivable of $540,000 and Interest Receivable of $5,400. Notes Receivable of $556,200 and Interest Receivable of $5,400. Notes Receivable of $540,000 and Interest Receivable of $16,200. Notes Receivable of $540,000 only. World of Sound is a small retail business that specializes in the sale of top-of-the-line sound systems. This year, the store has begun to carry the Surround Sound manufactured by Carp Company. Thus far, World of Sound has recorded the following transactions involving the Surround Sound: May 5 Purchased 18 units at a unit cost of $2,400 May 18 Purchased 15 additional units at $2,550 each June 12 Sold 19 units to the Davies Theater If World of Sound uses a perpetual inventory system, the journal entry to record the purchase on May 18th would include which of the following? Multiple Choice A debit to the Purchases account for $38,250. A debit to the Cost of Goods Sold for $38,250. A credit to Inventory for $38,250. A debit to Inventory for $38,250