Question

a. A vacant lot acquired for $180,000 is sold for $440,000 in cash. What is the effect of the sale on the total amount of the seller’s?
(1) Assets,
(2) Liabilities,
(3) Stockholders' equity?
b. Assume that the seller owes $69,000 on a loan for the land. After receiving the $440,000 cash in (a), the seller pays the $69,000 owed. What is the effect of the payment on the total amount of the seller’s?
(1) Assets,
(2) Liabilities,
(3) Stockholders' equity?
c. Is it true that a transaction always affects at least two elements (Assets, Liabilities, or Stockholders' Equity) of the accounting equation? Explain.



$1.99
Sales1
Views512
Comments0
  • CreatedFebruary 28, 2014
  • Files Included
Post your question
5000