Capstone Consulting Services acquired land 5 years ago for $200,000. Millstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreement, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?
Answer to relevant Questions(a) How does the payment of dividends of $15,000 affect the three elements of the accounting equation? (b) Is net income affected by the payment of dividends? Explain.A vacant lot acquired for $300,000, on which there is a balance owed of $120,000, is sold for $415,000 in cash. The seller pays the $120,000 owed. What is the effect of these transactions on the total amount of the ...Describe how the following transactions of Sun Microsystems, Inc., would affect the three elements of the accounting equation.a. Paid research and development expenses for the current year.b. Purchased machinery and ...Employees performed services in 2012, but the wages were not paid until 2013. During which year would the wages expense be reported on the income statement under (a) The cash basis? (b) The accrual basis?The prepaid insurance account had a balance of $14,400 at the beginning of the year. The account was increased for $9,600 for premiums on policies purchased during the year. What is the adjustment required at the end of the ...
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