Reporting Land Transactions on Statement of Cash Flows On the basis of the detai

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 reported on the statement of cash flows ACCOUNT Land ACCOUNT NO Balance Debit Date Jan.1 Mar. 12 Purchased for cash 389,000 Oct. 4 Sold for $214,000 Credit DebitCredit 1,143,000 1,532,000 183,000 1,349,000 Balance Section of Statement of Item Mar. 12: Purchase of fixed asset Oct. 4: Sale of fixed asset Gain on sale of fixed asset (assume the indirect method) Cash Flows Added or Deducted Amount Financing activities section Financing activities section Investing activities section Operating activities section Not on statement

Explanation / Answer

Reporting in statement of cash flow :

Item Statement of cash flows Added or deducted Amount Mar 12: Purchase of fixed assets Investing activities secion Deducted (389000) Oct 4: Sale of fixed assets Investing activities secion Added 214000 Gain on sale of fixed asset (assume the indirect method) Operating activities section Deducted (31000)

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