! Required information [The following information applies to the questions displayed below.] The following information was drawn from the year-end balance sheets of Mass Trading Company. Year 2 $ 37,500 232,500 861,000 96,500 Account Title Investment securities Equipment Buildings Land Year 1 $ 26,500 208,000 957,000 51,500 Additional information regarding transactions occurring during Year 2: 1. Investment securities that had cost $6,050 were sold. The Year 2 income statement contained a loss on the sale of investment securities of $600. 2. Equipment with a cost of $57,000 was purchased. 3. The income statement showed a gain on the sale of equipment of $5,500. On the date of sale, accumulated depreciation on the equipment sold amounted to $7,000. 4. A building that had originally cost $159,500 was demolished. 5. Land that had cost $26,200 was sold for $21,900. Required a. Determine the amount of cash flow for the purchase of investment securities during Year 2. Cash flow for the purchase of investment securities
! Required information [The following information applies to the questions displayed below.] The following information was drawn from the year-end balance sheets of Mass Trading Company. Year 2 $ 37,500 232,500 861,000 96,500 Account Title Investment securities Equipment Buildings Land Year 1 $ 26,500 208,000 957,000 51,500 Additional information regarding transactions occurring during Year 2: 1. Investment securities that had cost $6,050 were sold. The Year 2 income statement contained a loss on the sale of investment securities of $600. 2. Equipment with a cost of $57,000 was purchased. 3. The income statement showed a gain on the sale of equipment of $5,500. On the date of sale, accumulated depreciation on the equipment sold amounted to $7,000. 4. A building that had originally cost $159,500 was demolished. 5. Land that had cost $26,200 was sold for $21,900. Required a. Determine the amount of cash flow for the purchase of investment securities during Year 2. Cash flow for the purchase of investment securities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
The following information was drawn from the year-end balance sheets of Mass Trading Company.
Year 2
$ 37,500
232,500
861,000
96,500
Additional information regarding transactions occurring during Year 2:
1. Investment securities that had cost $6,050 were sold. The Year 2 income statement contained a loss on the sale of
investment securities of $600.
2. Equipment with a cost of $57,000 was purchased.
3. The income statement showed a gain on the sale of equipment of $5,500. On the date of sale, accumulated
depreciation on the equipment sold amounted to $7,000.
Account Title
Investment securities
Equipment
Buildings
Land
Year 1
$ 26,500
208,000
957,000
51,500
4. A building that had originally cost $159,500 was demolished.
5. Land that had cost $26,200 was sold for $21,900.
Required
a. Determine the amount of cash flow for the purchase of investment securities during Year 2.
Cash flow for the purchase of investment securities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbe3e682-0170-4e5e-a448-703bb6b4ca93%2F4d974c5b-8666-4cbb-835b-a71bdc12a4fb%2Fj5uh7yc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following information was drawn from the year-end balance sheets of Mass Trading Company.
Year 2
$ 37,500
232,500
861,000
96,500
Additional information regarding transactions occurring during Year 2:
1. Investment securities that had cost $6,050 were sold. The Year 2 income statement contained a loss on the sale of
investment securities of $600.
2. Equipment with a cost of $57,000 was purchased.
3. The income statement showed a gain on the sale of equipment of $5,500. On the date of sale, accumulated
depreciation on the equipment sold amounted to $7,000.
Account Title
Investment securities
Equipment
Buildings
Land
Year 1
$ 26,500
208,000
957,000
51,500
4. A building that had originally cost $159,500 was demolished.
5. Land that had cost $26,200 was sold for $21,900.
Required
a. Determine the amount of cash flow for the purchase of investment securities during Year 2.
Cash flow for the purchase of investment securities
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