On January 1, 2018, Prairie Enterprises purchased a parcel of land for $12,300 cash. At the time of purchase, the company planned to use the land for a warehouse site. In 2020, Prairie Enterprises changed its plans and sold the land. Required eBook a. Assume that the land was sold for $13,653 in 2020. Hint (1) Show the effect of the sale on the accounting equation. Ask (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? Print (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? b. Assume that the land was sold for $11,562 in 2020. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? Complete this question by entering your answers in the tabs below. Req A1 Req A2 and A3 Req B1 Reg B2 and B3 (1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 and A3 Reg B1 Req B2 and B3 (1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) PRAIRIE ENTERPRISES 2020 Accounting Equation Stockholders' Equity Retained Earnings Assets Cash Land Common Stock Reg A1 Req A2 and A3
On January 1, 2018, Prairie Enterprises purchased a parcel of land for $12,300 cash. At the time of purchase, the company planned to use the land for a warehouse site. In 2020, Prairie Enterprises changed its plans and sold the land. Required eBook a. Assume that the land was sold for $13,653 in 2020. Hint (1) Show the effect of the sale on the accounting equation. Ask (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? Print (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? b. Assume that the land was sold for $11,562 in 2020. (1) Show the effect of the sale on the accounting equation. (2) What amount would Prairie report on the 2020 income statement related to the sale of the land? (3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land? Complete this question by entering your answers in the tabs below. Req A1 Req A2 and A3 Req B1 Reg B2 and B3 (1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 and A3 Reg B1 Req B2 and B3 (1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus sign.) PRAIRIE ENTERPRISES 2020 Accounting Equation Stockholders' Equity Retained Earnings Assets Cash Land Common Stock Reg A1 Req A2 and A3
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter17: Business Tax Credits And The Alternative Minimum Tax
Section: Chapter Questions
Problem 11P
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Transcribed Image Text:On January 1, 2018, Prairie Enterprises purchased a parcel of land for $12,300 cash. At the time of purchase, the company planned to
use the land for a warehouse site. In 2020, Prairie Enterprises changed its plans and sold the land.
Required
eBook
a. Assume that the land was sold for $13,653 in 2020.
Hint
(1) Show the effect of the sale on the accounting equation.
Ask
(2) What amount would Prairie report on the 2020 income statement related to the sale of the land?
Print
(3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land?
b. Assume that the land was sold for $11,562 in 2020.
(1) Show the effect of the sale on the accounting equation.
(2) What amount would Prairie report on the 2020 income statement related to the sale of the land?
(3) What amount would Prairie report on the 2020 statement of cash flows related to the sale of the land?
Complete this question by entering your answers in the tabs below.
Req A1
Req A2 and A3
Req B1
Reg B2 and B3
(1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus
sign.)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Reg A1
Reg A2 and A3
Reg B1
Req B2 and B3
(1) Show the effect of the sale on the accounting equation. (Enter any decreases to account balances with a minus
sign.)
PRAIRIE ENTERPRISES
2020 Accounting Equation
Stockholders' Equity
Retained Earnings
Assets
Cash
Land
Common Stock
Reg A1
Req A2 and A3
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