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 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:
| ACCOUNT Land | ACCOUNT NO. | ||||||||||
| Balance | |||||||||||
| Date | Item | Debit | Credit | Debit | Credit | ||||||
| Jan. | 1 | Balance | 925,000 | ||||||||
| Mar. | 12 | Purchased for cash | 134,300 | 1,059,300 | |||||||
| Oct. | 4 | Sold for $106,800 | 89,400 | 969,900 | |||||||
| 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 (assume the indirect method) | Operating activities section | Deducted | $ |
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
