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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
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:
tableACCOUNT Land,ACCOUNT NODateItem,Debit,Credit,tableBalanceDebittableBalanceCreditJanuary Balance,March Purchased for cash,October Sold for $
Section of Statement of
Item
Cash Flows
Added or Deducted
Amount
March : Purchase of fixed asset
October : Sale of fixed asset
Investing activitres section
Deducted
$
Gain on sale of fixed asset assume the indirect method
Investing activities section
Deducted
$
Operating activities section
Deducted
$
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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?
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