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On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $13,700 cash. At the time of purchase, the company planned to use the land for a warehouse site. In Year 3, Prairie Enterprises changed its plans and sold the land. Required a. Assume that the land was sold for $15,207 in Year 3. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the Year 3 income statement related to the sale of the land? (3) What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land? b. Assume that the land was sold for $12,878 in Year 3. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the Year 3 income statement related to the sale of the land? (3) What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land? Complete this question by entering your answers in the tabs below. Req A2 Req A1 Req B2 and A3 Req B1 and B3 (1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) PRAIRIE ENTERPRISES Year 3 Accounting Equation Assets Stockholders' Equity Common Retained Cash Land Stock Earnings + + = + Req A2 Req A1 Req B2 Req B1 and A3 and B3 (2) What amount would Prairie report on the Year 3 income statement related to the sale of the land? (3) What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land? Show less A Amount of (2) (3) Req A2 Req B2 Req A1 and A3 Req B1 and B3 (1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) PRAIRIE ENTERPRISES Year 3 Accounting Equation Assets Stockholders' Equity Cash Common Retained Land Stock Earnings + + + Req A2 Req A1 Req B2 and A3 Req B1 and B3 (2) What amount would Prairie report on the Year 3 income statement related to the sale of the land? (3) What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land? Show less A Amount of (2) (3) WIN

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