Land originally purchased for $27,290 is sold for $76,131 in cash. What is the effect of the sale on the accounting equation? a. assets increase by $76,131; owner's equity increases by $76,131 b. assets increase by $76,131; liabilities decrease by $27,290; owner's equity increases $48,841 Oc. assets increase by $48,841; owner's equity increases by $48,841 Od. assets increase by $18,277; no change in liabilities; owner's equity increases by $76,131

Land originally purchased for $27,290 is sold for $76,131 in cash. What is the effect of the sale on the accounting equation? a. assets increase by $76,131; owner's equity increases by $76,131 b. assets increase by $76,131; liabilities decrease by $27,290; owner's equity increases $48,841 Oc. assets increase by $48,841; owner's equity increases by $48,841 Od. assets increase by $18,277; no change in liabilities; owner's equity increases by $76,131

Name: Land originally purchased for $27,290 is sold for $76,131 in cash. Wh
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Land originally purchased for $27,290 is sold for $76,131 in cash. What is the effect of the sale on the accounting equation?a. assets increase by $76,131; owner's equity increases by $76,131b. assets increase by $76,131; liabilities decrease by $27

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Use the following information from separate companies a through d: Net Income (Loss) Interest Expense Income Taxes a. $ 111, 000 $ 59, 940 $ 27, 750 b. 105, 600 25, 344 38,016 c. 94, 350 25, 475 39, 627 d . 114, 100 4,564 54,768 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?
The following information is available for Oriole Company for the year ended December 31, 2022. Beginning cash balance $ 31,200 Accounts payable increase 7,410 Depreciation expense 53,300 Accounts receivable decrease 6,240 Inventory decrease 4,030 Net income 74,360 Cash received for sale of land at book value 135,200 Cash dividends paid 49,400 Income taxes payable decrease 5,070 Cash used to purchase land 105,300 Cash used to redeem bonds 85,800 Cash received from issuing stock 208,000 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Oriole CompanyStatement of Cash Flows—Indirect Methodchoose the accounting period December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022 select an opening name for section one…
A building with a book value of $41,219 is sold for $57,394 cash. Using the indirect method, choose how this transaction should be shown on the statement of cash flows. Select the correct answer. an increase of $41,219 from investing activities and an addition to net income of $16,175 an increase of $41,219 from investing activities an increase of $57,394 from investing activities an increase of $57,394 from investing activities and a deduction from net income of $16,175 4:06 PM 12/20/2019
Q.11. Land shown in the books at $600,000 was revalued as 1,000,000. What journal entries will be passed at the time of revaluation and at the end of year. Under what head, gain on revaluation will be shown in the Income statement?
Solve it with calculation and explanation of the question
Land costing $40,631 was sold for $79,720 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
Match the cash flow effect with the correct transaction or event. Assume the indirect method is used. Column A 1. Purchased land for cash: Purchased land for cash 2. Issued a twenty year mortgage note for cash: Issued a twenty year mortgage note for cash 3. Increase in the inventory balance: Increase in the inventory balance 4. Resold treasury stock for cash: Resold treasury stock for cash 5. Declared cash dividends: Declared cash dividends 6. Recorded depreciation expenses for the year: Recorded depreciation expenses for the year 7. Issued long-term bonds: Issued long-term bonds 8. Repaid principal on a note payable: Repaid principal on a note payable 9. Paid cash dividends: Paid cash dividends 10. Issued common stock for land: Issued common stock for land Column B a. Not reported on the Statement of Cash Flows b. Inflow from Operating Activities c.…
please step by step solution. please excel form answer.
The following information is available for Bridgeport Corp. for the year ended December 31, 2022. Beginning cash balance $ 39,600 Accounts payable increase 9,405 Depreciation expense 67,650 Accounts receivable decrease 7,920 Inventory decrease 5,115 Net income 94,380 Cash received for sale of land at book value 171,600 Cash dividends paid 62,700 Income taxes payable decrease 6,435 Cash used to purchase land 133,650 Cash used to redeem bonds 108,900 Cash received from issuing stock 264,000 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Bridgeport Corp.Statement of Cash Flows—Indirect Methodchoose the accounting period select an opening name for section one select an item…
Please do not give solution in image format
Required Information [The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2824 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other incone (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2824 and 2023 ($ in millions) Year Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income tax payable Cash Flows from Operating Activities Adjustments for noncash effects: Changes in operating assets and Mablities: 2824 Net cash flows from operating activities $ 246 388 894 227 187 69 97 $ 225 183 14 S 2023 $217 487 867 268 282 57 118 $830 315 515 0 422 93…
The Borio Company had an asset with an $8 book value and a $7 market value; it decided to distribute the asset as a property dividend. Journal entries were made to adjust the property to market value and declare the dividend. Indicate the combined effect on the Net Income and Retained Earnings, respectively: Select one: а. Decrease, Decrease b. No Effect, Decrease С. No Effect, Increase d. Decrease, Increase е. Increase, Decrease