70.2K
Verified Solution
Link Copied!
Reporting Land Acquisition for Cash and Mortgage Note on Statement of Cash Flows (Q.5)
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 | | | 317,100 | | | |
| Feb. | 10 | | | Purchased for cash | 469,300 | | | | 786,400 | | | |
| Nov. | 20 | | | Purchased with long-term mortgage note | 637,000 | | | | 1,423,400 | | | |
| Item | Section of Statement of Cash Flows | Added or Deducted | Amount |
| Purchase of land for cash | | | $ |
| Purchase of land by issuing long-term mortgage note | | | $ |
Answer & Explanation
Solved by verified expert
