Response to the following :
a. A vacant lot acquired for $100,000 is sold for $350,000 in cash. What is the effect of the sale on the total amount of the seller's (a) assets, (2) liabilities, and (3) stockholder's equity (retained earnings)?
b. Assume that the seller owes $75,000 owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholder's equity (retained earnings)?
c. Is it true that a transaction always affects at least two elements (Assets, Liabilities, or Stockholder's Equity) of the accounting equation? Explain.