Arcadia Pty Ltd provided the following financial data relating to Land owned by the entity. The non-current asset Land as at 1 July 2019 is $360,000 and 30 June 2020 is $420,000. Land costing $80,000 was sold for $100,000 in the financial period 1 July 2019 to 30 June 2020. The remaining land was revalued upward by $60,000. Additional land was purchased by Arcadia Pty Ltd and was financed by ZNA Bank. Disregard GST.

Required:

The journal entry and impact on the Statement of Cash Flow to record and report the new land purchased financed by ZNA Bank would be.

Group of answer choices

DR: Land $80,000 and CR: ZNA Bank $80,000. No impact on the Cash Flow Statement.

DR: Land $80,000 and CR: ZNA Bank $80,000. Investing Activity Outflow $80,000 Acquisition of land.

DR: Land $80,000 and CR: ZNA Bank $80,000. Investing Activity Inflow $80,000 Acquisition of land.

DR: Land $40,000 and CR: ZNA Bank $40,000. Investing Activity Inflow $40,000 Acquisition of land.

DR: Land $40,000 and CR: ZNA Bank $40,000. No impact on Cash Flow.