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 1,013,000 Mar. 12 Purchased for cash 304,000 1,317,000 Oct. 4 Sold for $167,000 143,000 1,174,000 Section of Statement of Cash Flows Added or Deducted Amount Item Mar. 12: Purchase of fixed asset Oct. 4: Sale of fixed asset Gain on sale of fixed asset (assume the indirect method)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
1,013,000
Purchased for cash
304,000
1,317,000
Mar. 12
Oct.
Sold for $167,000
143,000
1,174,000
4
Section of Statement of
Amount
Cash Flows
Added or Deducted
Item
Mar. 12: Purchase of fixed asset
Oct. 4: Sale of fixed asset
Gain on sale of fixed asset (assume the indirect method)
%24
%24
Transcribed Image Text:ageNOWv2/Online teach x CengageNOWv2| Online teachin x M (no subject) - morganmcgrew4@ x keAssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator3D&inprogress%3Dfalse eBook 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 1,013,000 Purchased for cash 304,000 1,317,000 Mar. 12 Oct. Sold for $167,000 143,000 1,174,000 4 Section of Statement of Amount Cash Flows Added or Deducted Item Mar. 12: Purchase of fixed asset Oct. 4: Sale of fixed asset Gain on sale of fixed asset (assume the indirect method) %24 %24
Expert Solution
Step 1

Formula:

Gain on sale of fixed asset = Sale value of Asset - Book value of Asset

Deduction of book value of Asset from the sale value of Asset derives the Gain on sale of fixed assets.

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