Consider each of the following independent cases. For each, comment on the appropriateness of the journal...

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Consider each of the following independent cases. For each, comment on the appropriateness of the journal entry presented, noting any elements, principles, constraints, or qualities in the conceptual framework that influence your decision. a Adebayo, Inc. hires a real estate appraiser who determines the company's building has increased in value by $100.000 during 2021. Adebayo records the following adjusting journal entry at December 31, 2021: Accumulated depreciation - building Depreciation expense 100,000 100,000 b. Hayward Corp. sels merchandise covered under a two year manufacturer's warranty in 2021, its first year of operations. At the end of 2021, the company estimates its cost to honor these warranties at $55.000, although no claims have been made as of that date. Hayward makes the following adjusting journal entry: Warranty expense 55,000 Warranty payable 55,000 C Olynyk Corp. receives an order on December 28, 2021 for 10,000 units of Product X9 at $7.00 each. Olynyk manufactures the product for $5.00 each, but only has 2,000 on hand, and ships them that day, with the customer's agreement that the rest will be shipped as soon as they are available. Olynyk records the following: Accounts receivable 70,000 70,000 Sales revenue (10,000 units x $7.00) 10,000 Cost of goods sold 10,000 Inventory (20.000 units x $5.00) Consider each of the following independent cases. For each, comment on the appropriateness of the journal entry presented, noting any elements, principles, constraints, or qualities in the conceptual framework that influence your decision. a Adebayo, Inc. hires a real estate appraiser who determines the company's building has increased in value by $100.000 during 2021. Adebayo records the following adjusting journal entry at December 31, 2021: Accumulated depreciation - building Depreciation expense 100,000 100,000 b. Hayward Corp. sels merchandise covered under a two year manufacturer's warranty in 2021, its first year of operations. At the end of 2021, the company estimates its cost to honor these warranties at $55.000, although no claims have been made as of that date. Hayward makes the following adjusting journal entry: Warranty expense 55,000 Warranty payable 55,000 C Olynyk Corp. receives an order on December 28, 2021 for 10,000 units of Product X9 at $7.00 each. Olynyk manufactures the product for $5.00 each, but only has 2,000 on hand, and ships them that day, with the customer's agreement that the rest will be shipped as soon as they are available. Olynyk records the following: Accounts receivable 70,000 70,000 Sales revenue (10,000 units x $7.00) 10,000 Cost of goods sold 10,000 Inventory (20.000 units x $5.00)

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1 As per Historical Cost Principle Fixed Assets should be kept recorded in the books of accounts at ... View the full answer