On January 1, 2016, Shelton Company had a balance of $325,000 in its Land account. During 2016,

Question:

On January 1, 2016, Shelton Company had a balance of $325,000 in its Land account. During 2016, Shelton sold land that had cost $106,500 for $132,000 cash. The balance in the Land account on December 31, 2016, was $285,000.

Required

a. Determine the cash outflow for the purchase of land during 2016.

b. Prepare the investing activities section of the 2016 statement of cash flows.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

See More Books

Question Posted: Apr 20, 2015 07:48 AM

See More Questions

On January 1, 2013, Shelton Company had a balance of $325,000 in its Land account. During 2013, Shelton sold land that had cost $106,500 for $132,000 cash. The balance in the Land account on December...
On January 1, 2015, Riley Company had a balance of $265,000 in its Equipment account. During 2015, Riley sold equipment that cost $85,000 for $48,000 cash. The balance in the equipment account on...
On January 1, 2013, Poole Company had a balance of $178,000 in its Land account. During 2013, Poole sold land that had cost $71,000 for $95,000 cash. The balance in the Land account on December 31,...
Assume an employee signs a non - disparagement clause. What would be considered breaking this clause? a . ) Telling a company's trade secret to a competing firm for a fee b . ) Using a work computer...
What are the risks of launching a new e-commerce site if implementation is not conducted effectively?
The standard method in both reflection and summary is paraphrasing, by which the listener states the essence of what has been said. This is done concisely, giving the other person a chance to review...
Parent Corporation owns all 30,000 shares of the common stock of Subsid, Inc. Parent has 60,000 shares of its own common stock outstanding. In 2009, Parent earns income (without any consider ation of...
The August 31 bank statement of Well Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data: a. The August 31 bank balance is $4,540. b. The...
Alex purchased 200 shares of ABC stock on June 2, 2016, for $1,200. In November 2017, ABC issued a 10% stock dividend. How many shares does Alex own now, and what is his basis?
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses...
The following accounts and corresponding balances were drawn from Jogger Companys 2017 and 2016 year-end balance sheets: The 2017 income statement is shown below: Income Statement Sales...
On January 1, 2016, Bacco Company had a balance of $72,350 in its Delivery Equipment account. During 2016, Bacco purchased delivery equipment that cost $22,100. The balance in the Delivery Equipment...
Federal law requires that employers not discriminate on the basis of a person's race, sex, national origin, or age over 40. Is this also an ethical requirement? A competitive requirement? Explain.
An employer has calculated the following amounts for an employee during the last week of June 2021. Gross Wages $1,800.00 Income Taxes $414.00 Canada Pension Plan $94.00 Employment Insurance $28.00...
Section Two: CASE ANALYSIS (Marks: 5) Please read the following case and answer the two questions given at the end of the case. Zara's Competitive Advantage Fashion houses such as Armani and Gucci...
The activity of carbon in liquid iron-carbon alloys is determined by equilibration of CO/CO2 gas mixtures with the melt. Experimentally at PT = 1 atm, and 1560C (1833 K) the equilibrated gas...
Apply knowledge of concepts and theories covered in the course to leader - the leader can either be themselves if they lead a team, someone real and personally known to them (such as a boss or leader...
A resistor in a dc circuit R = 1.2 2. The power dissipated P is a second-degree function of the voltage V. Graph P versus V from V = 0.0 V to V = 3.0 V.
What is the probability the baker will sell more than one batch? P(x > 1) = _______ A baker is deciding how many batches of muffins to make to sell in his bakery. He wants to make enough to sell...
Why is inventory management important for merchandising and manufacturing firms and what are the main tradeoffs for firms in managing their inventory?
The text states that private firms will not undertake the efficient amount of basic scientific research. a. Explain why this is so. In your answer, classify basic research into one of the types of...
Use the following table to classify each cost as a product cost or an SG&A cost. Also indicate whether the cost would be recorded as an asset or an expense. Assume product cost is defined by...
Use the following table to classify each cost as a product cost or an SG&A cost. Also indicate whether the cost would be recorded as an asset or an expense. Assume product cost is defined by...
Finch Corporation recognized accrued compensation cost. Use the following model to show how this event would affect the company's financial statements under the following two assumptions: (1) The...
(1 point) Bill makes annual deposits of $1900 to an an IRA earning 5% compounded annually for 14 years. At the end of the 14 years Bil retires. a) What was the value of his IRA at the end of 14...
Which of the following concerning short-term financing methods is NOT CORRECT? Short-term bank loans typically do not require assets as collateral. Firms generally have little control over the level...
Kingbird Corporation is preparing its December 31, 2017, balance sheet. The following items may be reported as either a current or long-term liability. 1. On December 15, 2017, Kingbird declared a...

On January 1, 2016, Shelton Company had a balance of $325,000 in its Land account. During 2016,

Question:

Step by Step Answer:

a Reconciliation of Land Account Beginning balance 325000 Increase due to purchasing land 6650...View the full answer

Fundamental Financial Accounting Concepts

Students also viewed these Managerial Accounting questions