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 292 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
Wow, this really help

komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Cats sold for meat alongside ducks Cats sold for meat alongside ducks
An antique painting is purchased in 1980 for $995. The value increases by 3.1% e An antique painting is purchased in 1980 for $995. The value increases by 3.1% e
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 ...
Plot of Land (Modified Offset Method) - Boxed Plot of Land (Modified Offset Method) - Boxed
Plot of Land (Modified Offset Method) - Offset lines Plot of Land (Modified Offset Method) - Offset lines
Birds-eye view of land Birds-eye view of land
Video: Parathyroid hormone (bone resorption) & Calcitonin (bone deposition)

For a complete list of videos, visit our video library