a. A vacant lot acquired for $279,500 is sold for $539,500 in cash. What is the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a. A vacant lot acquired for $279,500 is sold for $539,500 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) labilities, and (3) stockholders equity? If there is no change, select 'No change from the dropdown and then enter a "0" in the amount box. Effect Amount 1. Total Assets 2. Total Uabilities 3. Stockholders Equity b. Assume that the seller owes $78,500 on a loan for the land. After receiving the $539,500 cash in (a), the seler pays the $78,500 owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) labilities, and (3) stockholders equity? If there is no change, select 'No change' from the dropdown and then enter a 0 in the amount box. Consider only the payoff of the loan, without considering the sale of the land. Effect Amount 1. Total Assets 2. Total Liabilities 3. Stockhoiders Equity e. Isit true that a transaction always affects at least two elements (Assets, Liabilities, or Stockholders' Equity) of the accounting equation? a. A vacant lot acquired for $279,500 is sold for $539,500 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) labilities, and (3) stockholders equity? If there is no change, select 'No change from the dropdown and then enter a "0" in the amount box. Effect Amount 1. Total Assets 2. Total Uabilities 3. Stockholders Equity b. Assume that the seller owes $78,500 on a loan for the land. After receiving the $539,500 cash in (a), the seler pays the $78,500 owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) labilities, and (3) stockholders equity? If there is no change, select 'No change' from the dropdown and then enter a 0 in the amount box. Consider only the payoff of the loan, without considering the sale of the land. Effect Amount 1. Total Assets 2. Total Liabilities 3. Stockhoiders Equity e. Isit true that a transaction always affects at least two elements (Assets, Liabilities, or Stockholders' Equity) of the accounting equation?
Expert Answer:
Answer rating: 100% (QA)
Answer a Particulars Effect Amount Total Assets 539500 279500 Increased 260000 Total Liabi... View the full answer
Related Book For
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
Posted Date:
Students also viewed these accounting questions
-
What is the effect of age on income distribution?
-
What is the effect of allowing two entries in a page table to point to the same page frame in memory? Explain how this effect could be used to decrease the amount of time needed to copy a large...
-
For diffraction by a single slit, what is the effect of increasing? (a) The slit width, and (b) The wavelength? Discuss.
-
12. Assume that the government has placed a regulation on the emission from diesel that will increase the cost of diesel. Graphically and verbally describe the impacts of this regulation on the...
-
What are the most common guidelines used to determine the monthly mortgage payment one can afford?
-
Express the equation of the circle (x a) 2 + y 2 = a 2 in polar form.
-
Water for a Pelton wheel turbine flows from the headwater and through the penstock as shown in Fig. P12.54. The effective friction factor for the penstock, control valves, and the like is 0.032 , and...
-
Kerry is interested in selling her convenience store for approximately $250,000 to $300,000. As Kerry is unfamiliar with the commercial real estate market in Red Deer, she engages a real estate...
-
Describe the evolution from giant molecular cloud to the death of a low mass (M ~ 1-1.5 solar mass) star. Make sure to use the appropriate terms (e.g. main sequence, subgiant, red giant branch,...
-
Operating Budget, Comprehensive Analysis Ponderosa, Inc., produces wiring hamess assemblies used in the production of semi-traller trucks. The wiring harness assemblies are sold to various truck...
-
What are the appropriate uses for each type of SQL triggers, Data Manipulation Language and Data Definition Language. Describe a real life situation or scenario that would benefit from using a...
-
What would be the Canadian equivalent of an S-Corp?
-
How does budget control help the restaurants to improve their financial performance? List any three
-
During which phase of the cell cycle does the DNA duplicate into two identical copies?
-
In general, when should a gain from an intercompany sale be recognized? Give reference.
-
Detail the intricate process of oxygen transport, delineating its journey from inhalation within the pulmonary system to its utilization within the mitochondria, encompassing the physiological...
-
Project scheduling serves all the following purposes EXCEPT which one? Group of answer choices A ) ) It shows the relationship of each activity to others B ) ) It identifies the precedence...
-
Sportique Boutique reported the following financial data for 2012 and 2011. Instructions(a) Calculate the current ratio for Sportique Boutique for 2012 and 2011.(b) Suppose that at the end of 2012,...
-
Describe business analysis and identify its objectives.
-
Telnet Corporation is a newly formed computer manufacturer. Telnet plans to begin operations on January 1, Year 2. Selected financial information is available for the preparation of Telnets six-month...
-
Netflix's Income Statement and Balance Sheet for 2010 and 2011 along with select note disclo sures are given below. Use the information to answer the following questions: 1. Netflix's share price on...
-
Mr. Smith wants to buy a car and is deciding between brands A and B. Car A costs \(\$ 20,000\), and Mr. Smith estimates that at the rate he drives he will sell it after 2 years and buy another of the...
-
Consider a continuous-time environment, with \(e\) as a variable outside of the market. (a) Suppose the final payoff is \(V\left(x_{e}, T ight)=x_{e}(T)\). Find \(V\left(x_{e}, t ight)\). (b) Find a...
-
Mr. Jones was considering a new grapefruit venture that would generate a random sequence of yearly cash flows. He asked his son. Gavin, "People tell me I should use a cost of capital figure to...
Study smarter with the SolutionInn App