Show Me How Effect of Transactions on Accounting Equation . A vacant lot acquired for $349,500 is sold for $674,500 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) Nabilities, and (3) stockholders' equity? If there is no change, select 'No change' from the dropdown and then enter a "0" in the amount box. 1. Total Assets Effect Increased Amount x 2. Total Liabilities 3. Stockholders' Equity No Change Increased b. Assume that the seller owes $98,000 on a loan for the land. After receiving the $674,500 cash in (a), the seller pays the $98,000 owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity? If there is no change, select 'No change' from the dropdown and then enter a '0' in the amount box. Consider only the payoff of the loan, without considering the sale of the land. Effect Amount 1. Total Assets 2. Total Liabilities 3. Stockholders' Equity Decreased Decreased No Change c. Is it true that a transaction always affects at least two elements (Assets, Liabilities, or Stockholders' Equity) of the accounting equation? No Feedback *Check My Work a. This activity involves selling land and receiving cash in exchange. b. Consider the effect of paying the debt. c. What accounting elements are affected if the asset is sold or purchased for cash? Check My Work All work saved. Previous Next Email Instructor Save and Exit Submit Assignment for Grading