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What effects does this journal entry have on the accounts? decrease cash and increase land decrease cash and decrease land increase cash and increase land increase cash and decrease land?

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sebastiansierraocm

Answer:

Decrease cash and increase land

Explanation:

The transaction is:

Account             Debit        Credit

Land                $105,000

Cash                                  $105,000

Purchased land for business.

Both land and cash are assets: they are debited when they increased, and they are credited when they decrease.

Because cash was used to purchase the land, cash decreases and land increases.

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