Which of the following is correct when land costing $20,000 is sold for $29,000?

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

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