On January 1, 2013, Liken Enterprises purchased a parcel of land for $20,000 cash. At the timeof
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Required
a. Assume that the land was sold for $22,500 in 2014.
(1) Show the effect of the sale on the accounting equation.
(2) What amount would Liken report on the income statement related to the sale of the land?
(3) What amount would Liken report on the statement of cash flows related to the sale of the land?
b. Assume that the land was sold for $18,500 in 2014.
(1) Show the effect of the sale on the accounting equation.
(2) What amount would Liken report on the income statement related to the sale of the land?
(3) What amount would Liken report on the statement of cash flows related to the sale of the land?
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Related Book For 
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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