This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The Austin Land Company sold land for 85,000 in cash. The land was originally purchased for 65,000 . ... (Read 303 times)

P68T

  • Hero Member
  • *****
  • Posts: 509
on: Jul 5, 2018
The Austin Land Company sold land for 85,000 in cash. The land was originally purchased for 65,000 . At thetime of the sale, 40,000 was still owed to Regions Bank. After the sale, The Austin Land Company paid off theloan. Explain the effect of the sale and the payoff of the loan on the accounting equation.

Question 2

An Internal Service Fund would report which of the following items on its balance sheet
 
  a. Reserved fund balance
  b. Unrestricted net assets
  c. Designated fund balance
  d. Capital contributions


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

BUTTHOL369

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jul 5, 2018
Answer to Question 1

Total assets decrease 20,000 (Cash increases by 45,000; Land decreases by65,000)
Total liabilities decrease 40,000 (Note payoff to Regions)Owner's equity increases 20,000 (Sales price  Cost of the land)

Answer to Question 2

B


P68T

  • Member
  • Posts: 509
Reply 2 on: Jul 5, 2018
YES! Correct, THANKS for helping me on my review

TheDev123

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Giant African land snails Giant African land snails
Morris and Company, Sussex Rush-Seated Chairs. Morris and Company, Sussex Rush-Seated Chairs.
Observed global land and ocean surface temperature anomalies since 1850 Observed global land and ocean surface temperature anomalies since 1850
A farmer has 100 acres of land on which she plans to grow wheat and corn. Each acre of wheat ... A farmer has 100 acres of land on which she plans to grow wheat and corn. Each acre of wheat ...
Sabrina's Fabric Land bought $5,000 of equipment at the beginning of 2015. Amortization ... Sabrina's Fabric Land bought $5,000 of equipment at the beginning of 2015. Amortization ...
A land snail (Helix aspersa) with the opening that leads to its lung visible at the left. A land snail (Helix aspersa) with the opening that leads to its lung visible at the left.
Video: Helper T cell receptors, activation, proliferation, differentiation & action

For a complete list of videos, visit our video library