Question

16-3 16-11 Reporting Land Transactions on Statement of Cash Flows On the basis of the details...

16-3 16-11

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

1,160,000

Mar.

12

Purchased for cash

371,000

1,531,000

Oct.

4

Sold for $203,000

174,000

1,357,000

Item

Section of Statement of

Cash Flows

Added or Deducted

Amount

Mar. 12: Purchase of fixed asset

$

Oct. 4: Sale of fixed asset

$

Gain on sale of fixed asset (assume the indirect method)

$

Homework Answers

Answer #1

Item

Section of Statement of

Added or Deducted

Amount

Cash Flows

Mar. 12: Purchase of fixed asset

Cash Flows from Investing Activities

Deducted

$        371,000.00

Oct. 4: Sale of fixed asset

Cash Flows from Investing Activities

Added

$        203,000.00

Gain on sale of fixed asset (assume the indirect method)

Cash Flows from Operating Activities

Deducted [203000 sale value - 174000 cost]

$          29,000.00

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