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 Credit Jan. 1 Mar. 12 Oct. 4 Balance Purchased for cash Sold for $204,000 Debit 1,131,000 1,504,000 1,329,000 373,000 175,000 Section of Statement of Cash Flows Item Added or Deducted Amount Mar. 12: Purchase of fixed asset Investing activities section Deducted x Oct. 4: Sale of fixed asset Investing activities section Added Gain on sale of fixed asset (assume the indirect method) Operating activities section Deducted Determining Cash Payments to Stockholders The board of directors declared cash dividends totaling $212,700 during the current year. The comparative balance sheet indicates dividends payable of $59,600 at the beginning of the year and $53,600 at the end of the year. What was the amount of cash payments to stockholders during the year? Reporting Land Acquisition for Cash and Mortgage Note 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 Credit Jan. 1 Feb. 10 Nov. 20 Balance Purchased for cash Purchased with long-term mortgage note 397,900 534,400 261,800 659,700 1,194,100 Item Added or Deducted Amount Section of Statement of Cash Flows Investing activities section Purchase of land for cash Deducted Purchase of land by issuing long-term mortgage note Separate schedule Report only Reporting Issuance and Retirement of Long-Term Debt On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the "Cash flows from financing activities" section of the statement of cash flows, assuming no gain or loss on retiring the bonds: ACCOUNT Bonds Payable ACCOUNT NO. Balance Credit Date Item Debit Credit Debit Jan. 1 Balance 460,000 2 92,000 368,000 Retire bonds Issue bonds June 30 276,000 644,000 ACCOUNT Discount on Bond Payable ACCOUNT NO. Balance Debit Credit Date Item Debit Credit Balance 7,360 Jan. 2 June 30 Dec. 31 Retire bonds Issue bonds 20,700 13,340 31,840 30,250 18,500 Amortize discount 1,590 Items Added or Deducted Amount Section of Statement of Cash Flows Financing activities section Retire bonds Deducted 65 Issue bonds Financing activities section Added 66 Amortization of discount Operating activities section, if indirect method used Added 67
