Which of the following is correct when land costing $23,000 is sold for $31,000? The land was a component of property and equipment on the balance sheet. Multiple ChoiceOOOOCost of goods sold is credited for $23,000.Gain on sale of land is credited for $8,000.Operating income increases $31,000.Revenues are debited for $31,000.

Cash received = $31,000 Cost of the land = $23,000 Profit on sale of land = $8,000

Answered: Which of the following is correct when…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following is correct when land costing $23,000 is sold for $31,000? The land was a component of property and equipment on the balance sheet.

Multiple Choice
O
O
O
O
Cost of goods sold is credited for $23,000.
Gain on sale of land is credited for $8,000.
Operating income increases $31,000.
Revenues are debited for $31,000.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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