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Exercise 17-10 Oriole Homes Ltd., a private company reporting under ASPE, reported the following for the year ended September 30, 2021: 2021 2020 Land $90,000

Exercise 17-10

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

2021 2020
Land $90,000 $60,000
Building 105,000 105,000
Equipment 41,700 37,500
Accumulated depreciation 19,500 16,500
Dividends payable 3,000 6,000
Mortgage note payable 33,000 15,000
Common shares 77,500 52,000
Retained earnings 66,000 24,000
Depreciation expense 4,500
Gain on equipment sold 600
Profit 63,000

Additional information:

1. Equipment was purchased for $6,000.
2. Land was purchased for $10,500 cash and a mortgage note payable was issued for the balance.
3. Common shares were issued for $25,500 cash.

Prepare the investing and financing activities sections of the cash flow statement and any required note disclosure. (Hint: Use T accounts to help you calculate the cash flows.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Note X: Land costing $

was acquired by paying $

cash and issuing a mortgage note payable for $

ORIOLE HOMES LTD. Cash Flow Statement (Partial)

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