
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Reporting Land Transactions on Statement of
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 | 1,296,000 | |||||||
Mar. | 12 | Purchased for cash | 389,000 | 1,685,000 | ||||||
Oct. | 4 | Sold for $214,000 | 183,000 | 1,502,000 |
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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