On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $14,400 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 $15,984 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 $13,536 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 Reg A2 and A3 Req B1 Req B2 and B3 Assume that the land was sold for $15,984 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 + 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 $14,400 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 $15,984 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 $13,536 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 telow. Req A1 Req A2 and A3 Req B1 Req B2 and B3 Assume that the land was sold for $15,984 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. ( Req A1 Reg 1 > On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $14,400 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 $15,984 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 $13,536 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 Reg A2 and A3 Req B1 Req B2 and B3 Assume that the land was sold for $13,536 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 On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $14,400 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 $15,984 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 $13,536 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. Reg A1 Reg A2 and A3 Req B1 Red B2 and 3 Assume that the land was sold for $13,536 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
