CheapBooks Incorporated (CI) had the following business activities, for which you are to prepare journal entries. Reference each journal entry to the transaction number, shown below. (Omit the "$" sign in your response.)

CheapBooks Incorporated (CI) had the following business activities, for which you are to prepare journal entries. Reference each journal entry to the transaction number, shown below. (Omit the "$" sign in your response.)

 

1.	Stockholders invest $58,000 cash in the corporation.
2.	CI purchased $1,020 of office supplies on credit.
3.	CI purchased office equipment for $16,000, paying $5,900 in cash and signing a 30-day note payable for the remainder.
4.	CI paid $510 cash on account for office supplies purchased in transaction 2.
5.	CI purchased two acres of land for $22,000, signing a 2-year note payable.
6.	CI sold one acre of land at one-half of the total cost of the two acres, receiving the full amount or $11,000 in cash.
7.	CI made a payment of $11,000 on its 2-year note.

 

	General Journal	Debit	Credit
1.	Cash
	Contributed capital
2.	Supplies
	Accounts payable
3.	Equipment
	Cash
	Notes payable
4.	Accounts payable
	Cash
5.	Land
	Notes payable
6.	Cash
	Land
7.	Notes payable
	Cash

Which of the following defines a Strict-liability tort?

Which of the following defines a Strict-liability tort?

	The defendant takes an action intending certain consequences.
	The defendant acts in a certain way that subjects other people to an unreasonable risk of harm.
	The defendant takes an action that is inherently dangerous.
	The defendant is sued by the state.

Strict-liability tort occur when the defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes.

The objective theory of contracts

Which of the following theories of contracts best explains the existence of a contract on the parties’ outward manifestations of intent and basing its interpretation on how a reasonable person would interpret it?




The efficiency theory of contracts




The substantive fairness theory




The objective theory of contracts




The bargain theory of consideration
Answer
The objective theory of contracts


Answer

The objective theory of contracts

Which of the following can be considered a defense to the enforcement of a contract?

Which of the following can be considered a defense to the enforcement of a contract?




Lack of genuine assent




Contract formation via the internet




Lack of an oral agreement




Lack of duress


Answer

Lack of genuine assent

Which element of the contract best describes the legal ability to enter into a binding agreement?

Which element of the contract best describes the legal ability to enter into a binding agreement?


Contractual capacity




Acceptance




Consideration




Legal object


Answer

Contractual capacity

Which element of the contract consists of the bargained-for exchange or what each party gets in exchange for his or her promise under the contract?

Which element of the contract consists of the bargained-for exchange or what each party gets in exchange for his or her promise under the contract?




Contractual capacity




Agreement


Consideration




Legal object


Answer

Consideration

A(n) _____ is defined as "a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty." estoppel taint trade secret

A(n) _____ is defined as "a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty." estoppel taint trade secret Answer
contract