On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $12,300 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 $13,653 in Year 3.

1. (1) Show the effect of the sale on the accounting equation.
2. (2) What amount would Prairie report on the Year 3 income statement related to the sale of the land?
3. (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 $11,562 in Year 3.
4. (1) Show the effect of the sale on the accounting equation.
5. (2) What amount would Prairie report on the Year 3 income statement related to the sale of the land?
6. (3) What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land?

QUESTION 2

Sellers Construction Company purchased a compressor for $100,100 cash. It had an estimated useful life of four years and a $9,900 salvage value. At the beginning of the third year of use, the company spent an additional $6,370 related to the equipment. The companys financial condition just prior to this expenditure is shown in the horizontal statements model. Required Record the $6,370 expenditure in the statements model under each of the following independent assumptions: (In the Statement of Cash Flows column, use the initials "OA" for operating activities, "FA" for financing activities, and "IA" for investing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.)

1. The expenditure was for routine maintenance.
2. The expenditure extended the compressors life.
3. The expenditure improved the compressor's operating capacity.

Complete this question by entering your answers in the tabs below. Assume that the land was sold for $13,653 in Year 3. Show the effect of the sale on the accounting equation. (Enter any decreases to account palances with a minus sign.) Complete this question by entering your answers in the tabs below. Assume that the land was sold for $13,653 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? Assume that the land was sold for $11,562 in Year 3 . Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) Assume that the land was sold for $11,562 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