Solution-What amount would prairie report on the year three

What amount would prairie report on the year three

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Reference no: EM132495388

On January 1, Year 1, Prairie Enterprises purchased a parcel of land for $28,000 cash. At the time of purchase, the company planned to use the land for a warehouse site. In Year 3, Prairie Enterprises changed its plans and sold the land.

Required

Question a. Assume that the land was sold for $29,500 in Year 3.

Question a1. Show the effect of the sale on the accounting equation.

Question a2. What amount would Prairie report on the Year 3 income statement related to the sale of the land?

Question a3. What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land?

Question b. Assume that the land was sold for $24,000 in Year 3.

Question b1. Show the effect of the sale on the accounting equation.

Question b2. What amount would Prairie report on the Year 3 income statement related to the sale of the land?

Question b3. What amount would Prairie report on the Year 3 statement of cash flows related to the sale of the land?

Assume that the land was sold for $29,500 in Year 3.

Reference no: EM132495388

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What amount would prairie report on the year three

Reference no: EM132495388

Reference no: EM132495388

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