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Exercise 8-13A (Algo) 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 $12.700 cash. At the time of purchase, the company planned to use the land for a warehouse Site In Year 3, Prairle Enterprises changed its plans and sold the land. Required a. Assume that the land was sold for $14.097 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 $11,938 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 Praire 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. Complete this question by entering your answers in the tabs below. Req A1 Reg A2 and A3 Reg B1 Reg B2 and B3 Assume that the land was sold for $14,097 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 Earnings Regal Req A2 and A3 > Complete this question by entering your answers in the tabs below. Req A1 Reg A2 and 13 Req B1 Req B2 and B3 Assume that the land was sold for $14,097 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 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 and A3 Req B1 Req B2 and B3 Assume that the land was sold for $11,938 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 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 and A3 Req B1 Reg B2 and 83 Assume that the land was sold for $11,938 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