Question
In: Accounting
The following information was drawn from the year-end balance sheets of Jordan Trading Company: Account Title...
The following information was drawn from the year-end balance sheets of Jordan Trading Company:
| Account Title | 2017 | 2016 | ||||
| Investment securities | $ | 36,800 | $ | 28,300 | ||
| Equipment | 225,000 | 214,500 | ||||
| Buildings | 862,000 | 948,500 | ||||
| Land | 88,500 | 49,500 | ||||
Additional information regarding transactions occurring during 2017:
-
Investment securities that had cost $5,130 were sold. The 2017 income statement contained a loss on the sale of investment securities of $610.
-
Equipment with a cost of $46,000 was purchased.
-
The income statement showed a gain on the sale of equipment of $5,300. On the date of sale, accumulated depreciation on the equipment sold amounted to $8,800.
-
A building that had originally cost $168,000 was demolished.
-
Land that had cost $25,800 was sold for $20,600.
Required
-
Determine the amount of cash flow for the purchase of investment securities during 2017.
-
Determine the amount of cash flow from the sale of investment securities during 2017.
-
Determine the cost of the equipment that was sold during 2017.
-
Determine the amount of cash flow from the sale of equipment during 2017.
-
Determine the amount of cash flow for the purchase of buildings during 2017.
-
Determine the amount of cash flow for the purchase of land during 2017.
-
Prepare the investing activities section of the 2017 statement of cash flows.
Determine the amount of cash flow for the purchase of investment, sale of investment, cost of the equipment that was sold, sale of equipment, purchase of buildings and purchase of land during 2017.
|
||||||||||||||||||||||
Prepare the investing activities section of the 2017 statement of cash flows. (Cash outflows should be indicated with minus sign.)
|
|||||||||||||||||||||||||||||
Options:
- Gain on sale of equipment
- Loss on sale of buildings
- Paid to purchase buildings
- Paid to purchase equipment
- Paid to purchase investment securities
- Paid to purchase land
- Proceeds from sale of equipment
- Proceeds from sale of investment securities
- Proceeds from sale of land
- Proceeds to purchase investment securities
Solutions
Expert Solution
| a |
Determine the amount of cash flow for the purchase of investment
securities during 2017. |
$ 13,630.00 |
| Ending Investment +Cost of investment sold less Beginning Investment =36800+5130-28300 | ||
| b |
Determine the amount of cash flow from the sale of investment
securities during 2017. |
|
| Cost of investment Sold - Loss | $ 4,520.00 | |
| c |
Determine the cost of the equipment that was sold during
2017. |
|
| Beginning Equipment Plus Purchase Less Ending Equipment =214500+46000-225000 | $ 35,500.00 | |
| d |
Determine the amount of cash flow from the sale of equipment during
2017. |
|
| Cost of equipment sold less Accu depreciation + Gain =35500-8800+5300 | $ 32,000.00 | |
| e |
Determine the amount of cash flow for the purchase of buildings
during 2017. |
$ 81,500.00 |
| Ending Building +Cost of Building demolished less Beginning Building 862000+168000-948500 | ||
| f |
Determine the amount of cash flow for the purchase of land during
2017. (88500+25800-49500) |
$ 64,800.00 |
| JORDAN TRADING COMPANY | |
| Statement of Cash Flows (Investing Activities) | |
| For the Year Ended December 31, 2017 | |
|
Paid to purchase buildings |
$ (81,500.00) |
| Paid to purchase equipment | $ (46,000.00) |
| Paid to purchase investment securities | $ (13,630.00) |
| Paid to purchase land | $ (64,800.00) |
| Proceeds from sale of equipment | $ 32,000.00 |
| Proceeds from sale of investment securities | $ 4,520.00 |
| Proceeds from sale of land | $ 20,600.00 |
| Net cash flow from investing activities | $ (148,810.00) |
ekkarill92 answered 4 months agoRelated Solutions
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