Impact of Transaction on Financial Statements.
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The company used $45,000 in cash to purchase land on the west side of Hatu Lake.
For Practice 3-1 through 3-5, do the following for each transaction:
1. List the accounts impacted by the transaction.
2. For each account, indicate whether the transaction increased or decreased the account.
3. For each account, indicate how much the transaction increased or decreased the account.
4. Compute the impact of the transaction on total assets, total liabilities, and total owners' equity.
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Solution Summary
The solution delves into details about the impact of several transactions on financial statements. It talks about both the debit and credit sides.
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1. Land was purchased for Cash. Thus the accounts impacted will be Land (or Property) and Cash (or Cash and Cash Equivalents). Keep in mind that different companies use different names for the same ...
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