What the journal entries would be for the transactions listed below?

The following information is available for 2018:

• On January 1, 2018, a customer paid the company $2,000,000 cash for a commission. The payment was deemed to be fully earned (recognized as Sales Revenue)
• On 1/1/18 a credible outside, investment group offered the company $24,000,000 cash for the building (because it was discovered that it is sitting on a gold mine). The company uses the revaluation model for buildings.
• The 100,000 Euro Accounts receivable was collected 2/1/18 when the exchange rate was 1.10
• On 2/1/18 the company paid amounts due for Accounts Payable
• On 3/1/18 Inventory costing $50,000 was sold to a customer on credit for $75,000
• A second, separate research and development project was initiated in January 2018. R&D expenses associated with this project during 2018 were $80,000. 20% of these were classified as development expenses, which will be amortized over 2 years beginning in 2019. $10,000 of this amount has not been paid as of 12/31/18.

Answer rating: 100% (QA)

The Journal Entries for the above transactions are ... View the full answer