Question
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
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
| Date | Item | Debit | Credit | Balance Debit | Balance Credit |
|---|---|---|---|---|---|
| January 1 | Balance | 937,000 | |||
| March 12 | Purchased for cash | 309,000 | 1,246,000 | ||
| October 4 | Sold for $169,000 | 145,000 | 1,101,000 |
| Item | Section of Statement of Cash Flows | Added or Deducted | Amount |
|---|---|---|---|
| March 12: Purchase of fixed asset | Financing activities sectionInvesting activities sectionOperating activities sectionNot on statement | AddedDeductedNot applicable | $fill in the blank 3 |
| October 4: Sale of fixed asset | Financing activities sectionInvesting activities sectionOperating activities sectionNot on statement | AddedDeductedNot applicable | $fill in the blank 6 |
| Gain on sale of fixed asset (assume the indirect method) | Financing activities sectionInvesting activities sectionOperating activities sectionNot on statement | AddedDeductedNot applicable | $fill in the blank 9 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Survey of Accounting
Authors: Carl S Warren
6th edition
978-113318912, 1133189121, 978-1133189121
