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 | 811,000 | ||||||||
| Mar. | 12 | Purchased for cash | 251,000 | 1,062,000 | |||||||
| Oct. | 4 | Sold for $138,000 | 118,000 | 944,000 | |||||||
| Item | Section of Statement of Cash Flows | Added or Deducted | Amount |
| Mar. 12: Purchase of fixed asset | Financing activities sectionInvesting activities sectionOperating activities sectionNot on statement | AddedDeductedNot applicable | $fill in the blank 3 |
| Oct. 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 with AI-Powered 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