Jan hires Duncan to act as her agent in acquiring some property for the development of a new subdivision she is planning that will be an elegant planned community. Jan instructs Duncan that he is not to say he is working for her or, for that matter, that he is working for anyone. If Duncan enters into a contract for land for Jan that is the parcel she wanted:. a. duncan only is liable on the contract for the purchase of the land. b. jan can never be held liable for the land because Duncan acted in his name. c. both Jan and Duncan are liable on the contract for the purchase of land. d. it is fraud to conceal the identity of a party to a contract. e. none of the above

c. both Jan and Duncan are liable on the contract for the purchase of land.

Explanation:

Since Jan hires Duncan to act as her agent in acquiring the property. If Duncan enters into a contract for land for Jan that is the parcel she wanted, both Jan and Duncan are liable on the contract for the purchase of land.

Answer and Explanation:

The journal entries are shown below

On Dec. 31, 2018

Interest receivable$600  

         To Interest income $600

(Being accrued interest earned is recorded)  

On Dec. 31, 2018

Interest income $2,400  

            To Retained earnings $2,400

(Being the closing of interest income is recorded)

On Jan. 31, 2019

Cash $900  

         To Interest receivable     $600

         To Interest income          $300

(Being cash receipt of interest is recorded)