Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. y courses effect of transactions on accounting equ

y Courses effect of Transactions on Accounting Equation a. A vacant lot acquired for $417,000...

80.2K

Verified Solution

Question

Accounting

image
y Courses effect of Transactions on Accounting Equation a. A vacant lot acquired for $417,000 is sold for $805,000 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. Effect Amount 1. Total Assets 2. Total Liabilities 3. Stockholders Equity b. Assume that the seller owes $117,000 on a loan for the land. After receiving the $805,000 cash in (a), the seller pays the $117,000 owed. What is the effect of the payment 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. Consider only the payoff of the loan, without considering the sale of the land. Effect Amount 1. Total Assets 2. Total Liabilities 3. Stockholders Equity c. Is it true that a transaction always affects at least two elements (assets, Liabilities, or Stockholders' Equity) of the accounting equation

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students