a. A vacant lot acquired for $100,000 is sold for $350,000 in cash. What is the effect
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b. Assume that the seller owes $75,000 owed. What is the effect of the payment on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholder’s equity (retained earnings)?
c. Is it true that a transaction always affects at least two elements (Assets, Liabilities, or Stockholder’s Equity) of the accounting equation? Explain.
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Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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