Posted: September 23rd, 2016

If the Pallet Company purchased land for $12,000 cash and sold it two years later for $14,000 cash, the sale transaction would involve which of the following?

If the Pallet Company purchased land for $12,000 cash and sold it two years later for $14,000 cash, the sale transaction would involve which of the following?

A. Decrease in Land, increase in Cash, increase in equity.
B. Increase in Land, increase in Cash, decrease in equity.
C. Decrease in Land, increase in Cash, decrease in equity.
D. Decrease in Land, increase in Cash, no other effects on the financial statements.