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On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $11,500 cash. At the time of purchase, the company planned to use

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On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $11,500 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 $12,765 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 $10,810 in Year 3. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the Yeap 3 income statement related to the sale of the land? (3) What amount would Prairie report on the Yeat 3 statement of cash flows related to the sale of the land? Assume that the land was sold for $12,765 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 Assets Stockholders' Equity Cash Land Common Stock Retained Earings + Assume that the land was sold for $12,765 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 Assume that the land was sold for $10,810 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 Assets Retained Earnings Cash Land Common Stock Assume that the land was sold for $10,810 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? b-2 of b-3

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