Response to the following questions:
1. A vacant lot acquired for $50,000, on which there is a balance owed of $30,000, is sold for $130,000 in cash. The seller pays the $30,000 owed. What is the effect of these transactions on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity?
2. Describe how the following business transactions affect the three elements of the accounting equation.
a. Received cash for services performed.
b. Borrowed cash at local bank.
c. Paid for utilities used in the business.
d. Issued capital stock for cash.
e. Purchased land for cash.