What amount should be reported as net cash used in investing activities? Sideways Company provided the following data:Purchased a building for P1,500,000. Paid P500,000 and signed amortgage with the seller for the remaining amount.Executed a debt-equity swap and replaced a P600,000 loan by givingthe lender ordinary shares worth P600,000 on the date the swap wasexecuted.Purchased land for P1,000,000. Paid P350,000 and issued ordinaryshares worth P650,000.Borrowed P550,000 under a long-term loan agreement.

Investing activities of an enterprise refers to acquisition (purchase) and disposal (sale) of long…

Answered: Sideways Company provided the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the following independent cases:A. At the beginning of the year, a check was issued for P400,000 as payment for a piece of land, and the buyer assumed the liability for the unpaid taxes at the end of the year, P10,000 and those assessed for the current year at P9,000.B. A company issued 14,000 ordinary shares (P10 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and competent appraisers.C. A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).D. A company purchased land by signing a note with the seller, requiring P100,000 down payment, payment of P120,000 one year from purchase, and P80,000 three years from purchase. The note is non-interest bearing,…
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