00:01
Hello, let's start with part a.
00:04
The question is what is the effect of the sale on the total amount of the seller's assets, liabilities and owner's equity? so let's start with assets.
00:18
As we can see, this vacant lot acquired for $115 ,000, but it was sold for $298 ,000 in cash.
00:38
So we need to find the difference.
00:45
So basically the difference is $183 ,000 and this is an increase.
01:02
So let me put the plus sign.
01:05
So we will see that this is the increase of assets.
01:16
So yeah, if we have this plus sign, we have an increase in assets.
01:24
What about liabilities? and actually there is nothing with liabilities.
01:29
So there is no change in liabilities.
01:34
So nothing happened.
01:37
But owner's equity, owner's equity, equity also increased by the same number this gain on sale of this equipment increased the owner's equity by the same number okay now part b again here we have a transaction and what is the effect of this payment on the total amount of the seller assets, liabilities and owners equity.
02:22
So it's a payment, so there is a decrease in cash.
02:29
So cash decreased minus and decreased by $80 ,000.
02:41
What about liabilities? this payment decreased the total amount of loans payable so there is also decrease in liabilities by the same amount of money which is $80 ,000 what about equity and nothing with equity equity doesn't change so here we don't have anything i can put this this way there is nothing with equity in part b and liabilities in part a so liability doesn't change.
03:22
So maybe i don't know how can i write this...
