The following information was drawn from the year-end balancesheets of Solomon Trading Company:Account Title...The...

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Accounting

The following information was drawn from the year-end balancesheets of Solomon Trading Company:

Account TitleYear 2Year 1
Investment securities$35,700$27,500
Equipment233,500212,500
Buildings846,500949,500
Land83,00065,000

Additional information regarding transactions occurring duringYear 2:

  1. Investment securities that had cost $5,090 were sold. The Year 2income statement contained a loss on the sale of investmentsecurities of $720.

  2. Equipment with a cost of $40,000 was purchased.

  3. The income statement showed a gain on the sale of equipment of$5,700. On the date of sale, accumulated depreciation on theequipment sold amounted to $7,600.

  4. A building that had originally cost $163,500 was demolished.

  5. Land that had cost $26,100 was sold for $21,800.

Required

  1. Determine the amount of cash flow for the purchase of investmentsecurities during Year 2.

  2. Determine the amount of cash flow from the sale of investmentsecurities during Year 2.

  3. Determine the cost of the equipment that was sold during Year2.

  4. Determine the amount of cash flow from the sale of equipmentduring Year 2.

  5. Determine the amount of cash flow for the purchase of buildingsduring Year 2.

  6. Determine the amount of cash flow for the purchase of landduring Year 2.

  7. Prepare the investing activities section of the Year 2 statementof cash flows.

Answer & Explanation Solved by verified expert
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Thank you for your patience Please give positive ratings so I can keep answering It would help me a lot Please comment if you have any query Thanks Solomon Trading Company 1 Determine the amount of cash flow for the purchase of investment securities during Year 2 Closing Balance 3570000 Add cost of securities sold 509000 Less Opening Balance 2750000 Cash flow for the purchase of investment securities during Year 2 1329000 2 Determine the amount of    See Answer
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Transcribed Image Text

In: AccountingThe following information was drawn from the year-end balancesheets of Solomon Trading Company:Account Title...The following information was drawn from the year-end balancesheets of Solomon Trading Company:Account TitleYear 2Year 1Investment securities$35,700$27,500Equipment233,500212,500Buildings846,500949,500Land83,00065,000Additional information regarding transactions occurring duringYear 2:Investment securities that had cost $5,090 were sold. The Year 2income statement contained a loss on the sale of investmentsecurities of $720.Equipment with a cost of $40,000 was purchased.The income statement showed a gain on the sale of equipment of$5,700. On the date of sale, accumulated depreciation on theequipment sold amounted to $7,600.A building that had originally cost $163,500 was demolished.Land that had cost $26,100 was sold for $21,800.RequiredDetermine the amount of cash flow for the purchase of investmentsecurities during Year 2.Determine the amount of cash flow from the sale of investmentsecurities during Year 2.Determine the cost of the equipment that was sold during Year2.Determine the amount of cash flow from the sale of equipmentduring Year 2.Determine the amount of cash flow for the purchase of buildingsduring Year 2.Determine the amount of cash flow for the purchase of landduring Year 2.Prepare the investing activities section of the Year 2 statementof cash flows.

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