explain the effect of sale

Question

The Austin Land Company sold land for $59,450 in cash. The land was originally purchased for $33,750. At the time of the sale, $13,090 was still owed to Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation. Enter all dollar amounts as positive numbers.

Total assets	DecreaseIncreaseIncrease	$
Total liabilities	DecreaseIncreaseDecrease	$
Stockholders' equity	DecreasesIncreasesIncreases	$

Answer 1

First lets record the journal entries for all the events

Land acquisition

Land 33,750

Cash 20,660

Notes payable 13,090

Sale of land

Cash 59450

Gain on land sale 25,700

Land 33750

Settlement of liability related to land

Notes payable 13,090

Cash 13,090

Net effect on cash -20660+59450-13090=25,700

Net effect on land 33,750-33,750=0

Net effect on NP 13,090-13,090=0

Net effect on SE Gain 25,700

Total assets	DecreaseIncreaseIncrease	$ 25,700
Total liabilities	DecreaseIncreaseDecrease	$0
Stockholders' equity	DecreasesIncreasesIncreases	$25,700

All the best.