On the basis of the details of the following fixed asset account, indicate the items to be reported on the

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
2014
Balance
Purchased for cash
Sold for $54,600
1
6
23
Jan.
Apr.
Nov.
496,000
556,200
519,720


Answer:

Cash flows from investing activities:
Cash received from sale of land…………………………………………………… $54,600
Less: Cash paid for purchase of land……………………………………………… 60,200
The gain on the sale of land, $18,120, would be deducted from net income in
determining the cash flows from operating activities if the indirect method of
reporting cash flows from operations is used.