Question
The Austin Land Company sold land for 85,000 in cash. The land was originally purchased for 65,000. At the time of the sale, 40,000 was
The Austin Land Company sold land for 85,000 in cash. The land was originally purchased for 65,000. At the time of the sale, 40,000 was still owed to Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
