Land originally purchased for $25,574 is sold for $78,584 in cash. What is the effect of the sale on the accounting equation?

assets increase by $$53,010; owner’s equity increases by $$53,010

Explanation:

Calculation for the What is the effect of the sale on the accounting equation

Using this formula

Profit on sale of land = Proceed from sale - Cost of land

Let plug in the formula

Profit on sale of land =$78,584 -$25,574

Profit on sale of land = $53,010

The accounts that will be affected in the accounting equation are:

Cash will increase by $78,584

Land will decrease by $25,574

Owners equity will increase by $53,010

Therefore the effect of the sale on the accounting equation is that Assets increase by $53,010; Owner’s equity increases by $53,010

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.