Let\'s start with gaining an understanding of the Statement of Cash Flows. From
ID: 2748626 • Letter: L
Question
Let's start with gaining an understanding of the Statement of Cash Flows. From Exercise 12-17A, select one of the journal entries and explain how the accounts in the journal entry impact the statement of cash flows
. a. Depreciation Expense 16,000 Accumulated Depreciation 16,000 b. Treasury Stock 12,000 Cash 12,000 c. Land 123,000 Cash 123,000 d. Equipment 28,000 Cash 28,000 e. Salary Expense 36,000 Cash 36,000 f. Furniture and Fixtures 36,000 Cash 36,000 g. Building 235,000 Note Payable, Long-Term 235,000 h. Cash 74,000 Accounts Receivable 13,000 Service Revenue 87,000 i. Bonds Payable 70,000 Cash 70,000 j. Cash 110,000 Common Stock 17,000 Capital in Excess of Par 93,000 k. Dividends Payable 25,000 Cash 25,000 l. Loss on Disposal of Equipment 2,000 Equipment, Net 2,000 m. Cash 10,000 Long-Term Investment 10,000Explanation / Answer
Impact of the above journal entry on cashflow statement:
Acqusition of land would be shown under cashflow from investing activities. it would reduce the cash balance under cashflow from investing activites and would reduce the overall cash balance in the cashflow statement.
c. Land 123,000 Cash 123,000Related Questions
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