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

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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: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.4E: The Accounting Equation Ginger Enterprises began the year with total assets of $500,000 and total...

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