7 eBook Reporting Land Transactions on Statement of Cash Flows On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan 1 Balance 1,135,000 Mar. 12 Purchased for cash 352,000 1,487,000 Oct. 4 Sold for $193,000 165,000 1,322,000 Section of Statement of Item Cash Flows Added or Deducted Amount Mar. 12: Purchase of fixed asset Investing activities section v Deducted v $ -311,000 X Oct. 4: Sale of fixed asset Investing activities section v Added v $ 86,000 X Gain on sale of fixed asset (assume the indirect method) Operating activities section v Deducted Feedback Check My Work Keep in mind that you are trying to determine what affect these transactions have on cash. What financial statement would the gain on the sale of fixed asset be reported on? What affect did the gain have on this financial statement? Based on your answer what would have to be done with the gain on the statement of cash flows? Check My Work Previous Next