Exercise 8-13A Effect of gains and losses on the accounting equation and financial statements LO 8-5 On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $14,000 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 $15,540 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 $13,160 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 A1 Req A2 and A3 Req B1 Req B2 and B3 Assume that the land was sold for $15,540 in Year 3. 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 Stockholders' Equity Land Common Stock + Retained Earnings Assets Cash = Exercise 8-13A Effect of gains and losses on the accounting equation and financial statements LO 8-5 On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $14,000 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 . Assume that the land was sold for $15,540 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? . Assume that the land was sold for $13,160 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 A1 Req A2 and A3 Req B1 Req B2 and B3 Assume that the land was sold for $15,540 in Year 3. What amount would Prairie report on the Year 3 income statement related to the sale of the land? What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land? a-2 of a-3. Exercise 8-13A Effect of gains and losses on the accounting equation and financial statements LO 8-5 On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $14,000 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 $15,540 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 $13,160 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 A1 Req A2 and A3 Req B1 Req B2 and B3 Assume that the land was sold for $13,160 in Year 3. 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 Stockholders' Equity Land Common Stock + Retained Earnings Assets Cash Exercise 8-13A Effect of gains and losses on the accounting equation and financial statements LO 8-5 On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $14,000 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 $15,540 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 $13,160 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 A1 Req A2 and A3 Req B1 Reg B2 and B3 Assume that the land was sold for $13,160 in Year 3. What amount would Prairie report on the Year 3 income statement related to the sale of the land? What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land? of b-2 b-3
