Hello,
Is a two year free maintenance warranty on a vehicle considered a liability?
Also, is the purchase of land with common stock when the land is to be stated at more than the par value of the stock considered a liability?
Thanks,
Eric
![]() |
Hello,
Is a two year free maintenance warranty on a vehicle considered a liability?
Also, is the purchase of land with common stock when the land is to be stated at more than the par value of the stock considered a liability?
Thanks,
Eric
Yes, but only to the person who is GIVING the warranty. So if you bought the car from me, the liability is to me.Quote:
Originally Posted by ESBates
What?Quote:
Originally Posted by ESBates
Thank you for the help.
Please disregard the second question (the idea was I buy land with stock, the land turns our to be worth more than th par value of the stock, etc... does this create a liability).
You're welcome.
As for question 2…
You record the land at what you pay for it.
So it you give $10,000 in common shares for the land, you record the land at $10,000, even if everyone else in the world would have paid $80,000 for the land, since the land only cost you $10,000
Makes sense.
May I ask another question.
When it comes to journal entries for marketable securities, what is the difference between an entry for a holding as avialable for sale versus a holding that is a trading security.
So I want to detail, over a couple of years, my journal entries for buyind and selling of securities as well as highligting unrealized gains and losses.
I want to do this for marketable securities that are available for sale and those that are trading securities.
I am not sure what difference this kind of classificaiton would make--if any. Do you have any initial thoughts on this?
Thanks.
All times are GMT -7. The time now is 12:01 AM. |