Question
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 onStatement 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:
ACCOUNTland ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
Jan.1 Balance 868,000
Mar.12 Purchased for cash 104,300 972,300
Oct.4 Sold for $95,550 63,840 908,460
Item Section of Statement of Cash Flows Added or Deducted Amount
Mar. 12:
Purchase of fixed asset Investing activities section Deducted
Oct. 4: Sale of fixed asset Investing activities section Added
Gain on sale of fixed asset Operating activities section Deducted
(assume the indirect method)
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