In the Garnet Company the Beginning and Ending Balances in Land

question 87

Multiple Choice

In the Garnet Company the beginning and ending balances in Land were $198000 and $240000 respectively. During the year land costing $50000 was sold for $50000 cash and land costing $92000 was purchased for cash. The entries in the reconciling columns of the worksheet will include a:

• A) credit to Land $50000 and a debit to Sale of Land $50000 under investing activities.
• B) debit to Land $92000 and a credit to Purchase of Land $92000 under financing activities.
• C) net debit to Land $42000 and a credit to Purchase of Land $42000 under investing activities.
• D) credit to Land $50000 and a debit to Sale of Land $50000 under financing activities.

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