Question

please solve both

1) For the financial statement line items listed below, indicate whether they would be classified as an asset, liability, stockholder equity, revenue or expense by providing an X in the appropriate column. The first one has been completed for you as an example: 10 points - 1 point each] Asset Liability Equity Revenue Expense Cash Contributed capital Accounts payable Sales Inventory Prepaid rent expense Retained earnings Cost of goods sold Building Accounts receivable Bonds payable 2) ABC Company is looking to purchase a new building and finds the perfect one. The seller is looking for $400,000, but ABC Company offers $380,000 After a long negotiation, ABC Company agrees to buy the building for $390,000. Immediately upon purchasing the building, the building is appraised at $395,000 for tax assessment purposes. 12 points each) a. On ABC Company's balance sheet, ($400,000 / $395,000 / $390,000 / $380,000) would be reported with Property, plant and equipment.

Answer 1

	Asset	Liability	Equity	Revenue	Expense
Cash	X
Contributed Capital			X
Accounts Payable		X
Sales				X
Inventory	X
Prepaid Rent expenses	X
Retained earnings			X
Cost of goods sold					X
Building	X
Accounts Receivable	X
Bonds Payable		X
On the Purchase of the Asset ABC company will recognise the Property,Plant and Equipment under Non-Current Assets at Cost of $390,000
Just an unsoclicited offer does not compel the buyer to change the value of the Asset
So reported balance of ABC company Will Not change to $500,000