Answer Happy

Effect of Transactions on Accounting Equation
a. A vacant lot acquired for $337,500 is
sold for $651,500 in cash. What is the effect of the sale on the
total amount of the seller's (1) assets, (2) liabilities,
and (3) stockholders' equity? If there is no change, select
'No change' from the dropdown and then enter a "0" in the amount
box.
DecreasedIncreasedNo Change
DecreasedIncreasedNo Change
DecreasedIncreasedNo Change
b. Assume that the seller owes $94,500 on
a loan for the land. After receiving the $651,500 cash in (a), the
seller pays the $94,500 owed. What is the effect of the payment on
the total amount of the seller's (1) assets, (2) liabilities, and
(3) stockholders' equity? If there is no change, select 'No change'
from the dropdown and then enter a '0' in the amount box. Consider
only the payoff of the loan, without considering the sale of the
land.
DecreasedIncreasedNo Change
DecreasedIncreasedNo Change
DecreasedIncreasedNo Change
c. Is it true that a transaction always
affects at least two elements (Assets, Liabilities, or
Stockholders' Equity) of the accounting equation?
YesNo