Question a a vacant lot acquired for 83000 cash is

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Question a. A vacant lot acquired for $83,000 cash is sold for $127,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity? b. Assume that the seller owes $52,000 on a loan for the land. After receiving the $127,000 cash in (a), the seller pays the $52,000 owed. What is the effect of the payment on the total amount of the seller’s (1) assets, (2) liabilities, and (3) owner’s equity? Answer a. (1) Total assets increased $44,000. (2) No change in liabilities. (3) Owner’s equity increased $44,000. b. (1) Total assets decreased $52,000. (2) Total liabilities decreased $52,000. (3) No change in owner’s equity. 18 of 31
Add Question Here Essay 0 points Modify Remove Question Indicate whether each of the following represents an asset, liability, or owner's equity: (a) accounts payable (b) wages expense (c) capital (d) accounts receivable (e) withdrawal (f) land Answer (a) liability (b) owner’s equity (c) owner’s equity (d) asset (e) owner’s equity (f) asset Add Question Here Essay 0 points Modify Remove Question The Austin Land Company sold land for $85,000 in cash. The land was originally purchased for $65,000. At the time of the sale, $40,000 was still owed to Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation.
Add Question Here Essay 0 points Modify Remove Question Given the following: Beginning capital $ 70,000 Ending capital $ 48,000 Owner's withdrawals $ 21,000 Calculate net income or net loss.
Add Question Here Essay 0 points Modify Remove Question The accountant for Franklin Company prepared the following list of account balances from the company’s records for the year ended December 31, 2011: Fees Earned $165,000 Cash $ 30,000 Accounts Receivable 14,000 Selling Expenses 44,000 Equipment 64,000 Franklin, Capital 27,000 Accounts Payable 12,000 Interest Income 3,000 Salaries & Wages Expense 40,000 Prepaid Rent 2,000 Income Taxes Payable 5,000 Income Taxes Expense 18,000 Notes Payable 20,000 Rent Expense 20,000 Determine the total assets at the end of 2011 for Franklin Company.
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