Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13, Problem 13.13EX
Reporting land acquisition for cash and mortgage note on statement of
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
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Reporting Land Acquisition for Cash and Mortgage Note 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.
Balance
229,100
Feb.
10
Purchased for cash
371,100
600,200
Nov. 20
Purchased with long-term mortgage note
486,200
1,086,400
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
Reporting Land Acquisition for Cash and Mortgage Note 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
272,900
Feb. I 10
Purchased for cash
393,000
665,900
Nov. 20
Purchased with long-term mortgage note
539,400
1,205,300
Item
Section of Statement of Cash Flows
Added or Deducted
Amount
Purchase of land for cash
Investing activities section
Deducted
Purchase of land by issuing
long-term mortgage note
Financing activities section
Investing activities section
Operating activities section
Separate schedule
Cash flows relating to asset held for rental to others are classified asA. OperatingB. FinancingC. InvestingD. Either Investing or Operating
Chapter 13 Solutions
Financial & Managerial Accounting
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - If salaries payable was 100,000 at the beginning...Ch. 13 - Prob. 6DQCh. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Name five common major classes of operating cash...
Ch. 13 - Classifying cash flows Identify whether each of...Ch. 13 - Prob. 13.2BECh. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Land transactions on the statement of cash flows...Ch. 13 - Common stock transactions on the statement of cash...Ch. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.1EXCh. 13 - Effect of transactions on cash flows State the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 13.4EXCh. 13 - Prob. 13.5EXCh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 13.8EXCh. 13 - Reporting changes in equipment on statement of...Ch. 13 - Prob. 13.10EXCh. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 13.12EXCh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Prob. 13.14EXCh. 13 - Prob. 13.15EXCh. 13 - Prob. 13.16EXCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 13.19EXCh. 13 - Prob. 13.20EXCh. 13 - Cash flows from operating activities direct method...Ch. 13 - Prob. 13.22EXCh. 13 - Prob. 13.1APRCh. 13 - Prob. 13.2APRCh. 13 - Prob. 13.3APRCh. 13 - Prob. 13.4APRCh. 13 - Statement of cash flows direct method applied to...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flows indirect method The...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flows direct method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1ADMCh. 13 - Prob. 2ADMCh. 13 - Prob. 3ADMCh. 13 - Priceline: Free cash flow Priceline Group, Inc. is...Ch. 13 - Prob. 13.1TIFCh. 13 - Prob. 13.3TIF
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- Under the direct method of preparing a statement of cash flows, what adjustment is made for depreciation expense?arrow_forwardWhat adjustment(s) should be made to reconcile net income to net cash flows from operating activities (indirect method) considering the following balances in current assets?arrow_forwardIdentify the accounts associated with the acquisitions and payments for long-lived assets cycle.arrow_forward
- Cash paid to purchase long-term investments would be reported in the Statement of Cash Flows as: Multiple Choice a deduction from the Investing section an addition to the Investing section a deducțion from the Operating section an addition to the Financing sectionarrow_forwardWhat is the correct account on the Statement of Cash Flows worksheet to balance a credit in the Accumulated Depreciation account on the balance sheet? A debit posted in the Cash Paid for the Acquisition of Plant Assets. A credit posted in the Depreciation Expense- Plant Assets. A debit posted in the Depreciation Expense- Plant Assets. A credit posted in the Gain on Sale of Equipment account. please give right answer and explainarrow_forwardWhat is unique about reporting current assets? Current assets are reported after they are converted into cash Current assets are reported in the order of their liquidity Current assets are reported net of depreciation Current assets are reported from highest to lowestarrow_forward
- What category in the statement of cash flows is used when reporting cash spent on long-lived assets, such as land improvements? What category is used when cash is spent on expenses, such as costs for regular upkeep of the grounds?arrow_forwardCan you give some explanation of why Amortization Expense is included as a source of cash in a cash flow statement?arrow_forwardWhere is the capitalized income recorded? Debit aide of Income and expenditure A/C Deducted from capital fund in Balance Sheet Credit side of Income and expenditure A/C Added to Capital Fund in the Balance Sheetarrow_forward
- choose the correct optionsarrow_forwardWhat kind of assets are relatively long-lived and depreciate over time? Group of answer choices cash current assets like cash and accounts receivable land fixed assets (property, plant and equipment assets)arrow_forwardOn the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: Date Item Debit Credit BalanceDebit BalanceCredit January 1 Balance 319,900 February 10 Purchased for cash 499,000 818,900 November 20 Purchased with long-term mortgage note 663,300 1,482,200 Item Section of Statement of Cash Flows Added or Deducted Amount Purchase of land for cash $fill in the blank 3 Purchase of land by issuinglong-term mortgage note $fill in the blank 6arrow_forward
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