A vacant lot acquired for $449,500 is sold for $867,500 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity? If there is no change, select 'No change from the dropdown and then enter a "0" in the amount box.
 

Transcribed Image Text:

Nature of Transactions Teri West operates her own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in stockholders' equity, except transaction (5), affects net income. Assets Liabilities + Stockholders' Equity Cash + Supplies + Land Accounts Payable + Capital Stock+ Retained Earnings Dividends + Fees Earned Bal. 25,100 3,300 62,800 6,800 19,400 65,000 1. +29,400 29,400 2. -12,600 +12,600 3. -21,800 4. +1,300 +1,300 5. -1,700 -1,700 6. -6,000 -6,000 7. -2,500 Bal. 12,400 2,100 75,400 2,100 19,400 65,000 1,700 29,400 Nature of Transactions Teri West operates her own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in stockholders' equity, except transaction (5), affects net income. Assets Liabilities + Stockholders' Equity Cash + Supplies + Land Accounts Payable + Capital Stock+ Retained Earnings Dividends + Fees Earned Bal. 25,100 3,300 62,800 6,800 19,400 65,000 1. +29,400 29,400 2. -12,600 +12,600 3. -21,800 4. +1,300 +1,300 5. -1,700 -1,700 6. -6,000 -6,000 7. -2,500 Bal. 12,400 2,100 75,400 2,100 19,400 65,000 1,700 29,400

Answer rating: 100% (QA)

a 1 Total assets increased 418000 867500 449500 2 No change in liabilities ... View the full answer