Author Question: Land, originally purchased for 30,000, is sold for 62,000 in cash. What is the effect of the sale on ... (Read 167 times)

bclement10

  • Hero Member
  • *****
  • Posts: 560
Land, originally purchased for 30,000, is sold for 62,000 in cash. What is the effect of the sale on the accountingequation?
 a. assets increase 62,000; owner's equity increases 62,000
  b. assets increase 32,000; owner's equity increases 32,000
  c. assets increase 62,000; liabilities decrease 30,000; owner's equity increases 32,000
  d. assets increase 30,000; no change for liabilities; owner's equity increases 62,000

Question 2

A Debt Service Fund received a 100,000 payment from the General Fund to finance upcoming debt service payments. During the year, Debt Service Fund payments of 50,000 interest and 60,000 principal were made as they become due.
 
  The Debt Service Fund statement of revenues, expenditures, and changes in fund balance should report
  a. An excess of revenues over expenditures of 50,000
  b. An excess of expenditures over revenues of 10,000
  c. An excess of expenditures over revenues of 50,000
  d. An excess of expenditures over revenues of 110,000



Juro

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

b

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

For a complete list of videos, visit our video library