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 311 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
:D TYSM

dyrone

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Waterspouts are tornadoes that occur over warm-water bodies, instead of over land. Waterspouts are tornadoes that occur over warm-water bodies, instead of over land.
Changes in Land Configuration and Surface Characteristics Changes in Land Configuration and Surface Characteristics
Food vs Cash: Which Is More Effective for Alleviating Hunger? Food vs Cash: Which Is More Effective for Alleviating Hunger?
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Plot of land (Part b) Plot of land (Part b)
Plot of land (Part c) Plot of land (Part c)
Video: Hypoglycemia Animation

For a complete list of videos, visit our video library