EX 16-13 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
2014
Balance
Purchased for cash
Purchased with long-term
 mortgage note
1
10
20
Jan.
Feb.
Nov.
156,000
402,000
726,000


Answer:

Cash flows from investing activities:
Cash paid for purchase of land………………………………………………………… $246,000
A separate schedule of noncash investing and financing activities would report
the purchase of $324,000 land with a long-term mortgage note, as follows:
Purchase of land by issuing long-term mortgage note……………………………… $324,000