How would element of accounting equation be affected by sale


Response to the following questions:

1. Fathom Consulting Services acquired land three years ago for $25,000. Fathom recently signed an agreement to sell the land for $80,000. In accordance with the sales agreement, the buyer transferred $80,000 to Fathom's bank account on October

2. How would elements of the accounting equation be affected by the sale?

3. (a) How does the payment of dividends of $30,000 affect the three elements of the accounting equation?

(b) Is net income affected by the payment of dividends? Explain.

 

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Accounting Basics: How would element of accounting equation be affected by sale
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