If I buy land for 22,000 and have 18,000 in assets, what happens to my books? How do I account for that transaction properly?

ANSWER

The BIDaWIZ Team's Answer:

You will debit a "land asset" account, for $22K, and you will credit the "cash" account, or a liability account,

if you financed the purchase, in the amount of $22K. For the assets, you will debit a separate asset account, for $18K, and you will credit an equity account, in the amount of $18K, to account for the contribution of the assets.