Preferred Homes Ltd., a private company reporting under ASPE, reported the following for the year ended September

Question:

Preferred Homes Ltd., a private company reporting under ASPE, reported the following for the year ended September 30, 2021:

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Additional information:

1. Equipment was purchased for $20,000.

2. Land was purchased for $35,000 cash and a mortgage note payable was issued for the balance.

3. Common shares were issued for $85,000 cash.

Instructions

Prepare the investing and financing activities sections of the cash flow statement and any required note disclosure. Use T accounts to help you calculate the cash flows.

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Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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