Question

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 Jan. 1 | Balance Feb. 10 Purchased for cash Nov. 20 Purchased with long-term mortgage note LI DO US 191 os 50 888 Amount Ole $-312,800 1 Report only X $-417,900 X Item Section of Statement of Cash Purchase of land for cash Investing activities section Purchase of land by issuing Investing activities section long-term mortgage note Financing activities section Investing activities section Operating activities section Remember that you are trying to defu - Separate schedule Learning Objective 3 and Learning oL Check My Work fansactions have on cash.

Answer 1

Classification

Item	Section of statement of cash flows	Added or deducted	Amount
Purchase of land for Cash	Investing activities section	Deducted	-312800
Purchase of land by issuing long term mortgage note	Separate schedule	None	417900