a. A vacant lot acquired for $150,000 is sold for $290,000 in cash. What is the effect
Question:
a. A vacant lot acquired for $150,000 is sold for $290,000 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 $80,000 on a loan for the land. After receiving the $290,000 cash in (a), the seller pays the $80,000 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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
a 1 Increase in asset cash by 290000 and a decrease in asset land ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
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.
-
Sugar (C12H22O11) is a molecular compound that stays together inwater, while NaCl and MgSO4?7H2O are ionic compounds that dissociate into cations andanions as illustrated in the NaCl example below:...
-
A 90% confidence interval for the number of hours that full-time college students sleep during a weekday is lower bound: 7.8 and upper bound: 8.8 hours. Which of the following represents a reasonable...
-
Using the average baseball salary from 2000 through 2012 data for Problem 16.18 on page 626 (stored in BBSalaries). a. Fit a third-order autoregressive model to the average baseball salary and test...
-
Sampras Sporting Goods Company manufactures two types of tennis rackets, the Junior and Pro-Striker models. The production budget for November for the two rackets is as follows: Junior Pro-Striker...
-
A group of businessmen formed a corporation to lease for 5 years a piece of land at the intersection of two busy streets. The corporation has invested $50,000 in car-washing equipment. They will...
-
Complete a Vertical Analysis of the Balance Sheets for Nike, Inc. Percentages should have two digitals after the decimal and no percentage symbol (example: 00.00) (in millions) ASSETS 2018 Percent...
-
For a recent year, the balance sheet for The Campbell Soup Company (CPB) includes accrued expenses of $561 million. The income before taxes for the year was $1,293 million. a. Assume the accruals...
-
Describe how the following business transactions affect the three elements of the accounting equation. a. Invested cash in business. b. Received cash for services performed. c. Paid for utilities...
-
Indicate whether each of the following types of transactions will either (a) increase owners equity or (b) decrease owners equity: 1. Expenses 2. Revenues 3. Owners investments 4. Owners withdrawals
-
What is meant by the explained variation? How is it computed?
-
A machine of mass 520 kg produces a vertical disturbing force which oscillates sinusoidally at a frequency of 25 Hz. The force transmitted to the floor is to have an amplitude, at this frequency, not...
-
The Singer Division of Patio Enterprises currently earns $2.97 million and has divisional assets of $22 million. The division manager is considering the acquisition of a new asset that will add to...
-
2) Using trait leadership, situational leadership, functional leadership theories, how would you analyze your present or past employer at Walmart? 3) How would you analyze your own style using these...
-
A division is considering the acquisition of a new asset that will cost $3,000,000 and have a cash flow of $770,000 per year for each of the four years of its life. Depreciation is computed on a...
-
3. Calculate the density of water by setting the slope equal to pAg and solving for p. Slope=pAg p = Slope/Ag
-
With reference to Exercise 3.7, suppose that each point \((i, j)\) of the sample space is assigned the probability \(\frac{420 / 401}{2(i+j)}\). (a) Verify that this assignment of probabilities is...
-
The Heese Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Heeses purchased and used 101,000 pounds of potatoes at a price of $ 0.70 per...
-
It takes 360 kJ to keep a 100-watt lightbulb burning for 1 hour. Assuming that the lightbulb wont burn out, for how many years could the energy of the mass defect of 1 mole of 14 C keep a 100-W...
-
One of the largest fraud losses in history involved a securities trader for the Singapore office of Barings Bank, a British merchant bank. The trader established an unauthorized account number that...
-
Deana Crisman works at the drive-through window of Awesome Burgers. Occasionally, when a drive-through customer orders, Deana fills the order and pockets the customers money. She does not ring up the...
-
The actual cash received from cash sales was $17,572.40, and the amount indicated by the cash register total was $17,589.65. Journalize the entry to record the cash receipts and cash sales.
-
Capital = Debt + Equity so... Calculating WACC is applying a simple weighted average to the Cost of Debt (Kd) and the Cost of Equity (Ke) to calculate the overall Cost of Capital. To understand a...
-
The owner of Madison Pratt Designs is planning to request a line of credit from her bank.She has estimated the following sales forecasts for the firm for the following months:
-
Darsh received a Form 1 0 9 9 - K , Payment Card and Third Party Network Transactions, reporting income for services rendered on a one - time basis to a neighbor, but it also included some personal...
Study smarter with the SolutionInn App