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Land is purchased by the business for $100,000. The company pays for land with a $20,000 cash payment and the execution of an $80,000 promissory
Land is purchased by the business for $100,000. The company pays for land with a $20,000 cash payment and the execution of an $80,000 promissory note payable to the seller. How does this purchase affect the business's accounting equation? Your answer: O Assets increase $80,000; liabilities decrease $20,000 O Assets increase $20,000; liabilities decrease $80,000 O Assets increase $80,000; owner's equity increases $80,000 Assets increase $80,000; liabilities increase $80,000
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