User Account

All Pages

What is the effect of the payment on the total amount

Assignment Help Accounting Basics
Reference no: EM132679302

Problem - Effect of transactions on accounting equation

a. A vacant lot acquired for $100,000 is sold for $350,000 in cash. What is the effect of the sale on the total amount of the seller's (1) assets (2) liabilities (3) stockholders' equity (retained earnings)?

b. Assume that the seller owes $75,000 on a loan for the land. After receiving the $350,000 cash in (a), the seller pays the $75,000 owed. What is the effect of the payment on the total amount of the seller's (1) assets (2) liabilities (3) stockholders' equity (retained earnings)?

c. Is it true that a transaction always affects at least two elements (Assets, Liabilities, or Stockholders' Equity) of the accounting equation? Explain.

Reference no: EM132679302

Questions Cloud

Prepare a retained earnings statement for the month : Financial information related to Lost Trail Company, a corporation, for the month ended June 30, 2012, Prepare a retained earnings statement for the month
Determine the net income of each company for the year : On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year
What is the intrinsic value of the stock : If the required rate of return is 9%, what is the intrinsic value of the stock?
Indicate effect of each transaction on accounting equation : Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a column
What is the effect of the payment on the total amount : After receiving the $350,000 cash in (a), the seller pays the $75,000 owed. What is the effect of the payment on the total amount of the seller's assets
What is the book value of the machine after three years : What is the book value of the machine after 3 years? A machine with a purchase price of $11,000 is to be depreciated over its useful working life of 6 years
Determine the Stockholders equity as of December : Determine Stockholders' equity as of December 31, 2012, assuming that assets increased by $150,000 and liabilities increased by $70,000 during 2012
What is the business that will be owning : What is the business that you will be owning? Explain one item that you have learned in this accounting course that you did not know before?
Find how is the british subsidiary gross margin percentage : Find how is the British subsidiary's 20X2 gross margin percentage, based on U.S. dollar financial statements, most likely to compare to gross margin percentage

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd