Transaction 2: Purchase of Land

View all the transactions, and do all the accounting, from the perspective of the business not from the viewpoint of the proprietor/owner. The business purchases land for an office location, paying cash of $20,000. This transaction effects the accounting effect the accounting equation of Smart Touch Learning as follows:

Assets	+	Liabilities +	Owners Equity
Cash	Land		Sheena Bright, Capital
(1)30,000		=	?
?	+ ?
Bal 10,000	20,000		?
			?

The cash purchase of land increases one asset, Land, and decreases another asset, Cash. After the transaction is completed, the business has cash of $10,000, land of $20,000, no liabilities, and owner equity of $30,000. Note that the total balances on both sides of the equation must always be equal.