Which of the following is correct when land costing $20,000 is sold for $29,000?
ID: 2426766 • Letter: W
Question
Which of the following is correct when land costing $20,000 is sold for $29,000? The land was a component of property and equipment on the balance sheet. Revenues arc debited for $29.000. Cost of goods sold is credited for $20,000. Gain on sale of land is credited for $9,000. Operating income increases $29,000. Which of the following statements is correct? Recording revenues results in an increase in assets or a decrease in liabilities. Recording revenues results in an increase in assets or a decrease in stockholders' equity. Recording expenses results in a decrease in assets or a decrease in liabilities. Recording expenses results in an increase in assets or an increase in liabilities.Explanation / Answer
Gain on sale of land is credited by Rs. 9000
Recording expenses results in an increase in assets or decrease in liabilities