If the Pallet Company purchased land for $12,000 cash and sold it two years later for $14,000 cash, the sale transaction would involve which of the following?

If the Pallet Company purchased land for $12,000 cash and sold it two years later for $14,000 cash, the sale transaction would involve which of the following?

A. Decrease in Land, increase in Cash, increase in equity.
B. Increase in Land, increase in Cash, decrease in equity.
C. Decrease in Land, increase in Cash, decrease in equity.
D. Decrease in Land, increase in Cash, no other effects on the financial statements.

Bangor Company was started on January 1, 2007 when $8,500 cash was acquired by issuing stock to investors. Also, on January 1, 2007, the company purchased office equipment for cash at a cost of $5,200. The equipment had a five year useful life and a $1,000 salvage value. Bangor earned $1,500 cash revenue during 2007 and $1,500 in cash revenue during 2008.

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