Question: Riley Company paid 60 000 cash to purchase land from Smally

Riley Company paid $60,000 cash to purchase land from Smally Company. Smally originally paid $60,000 for the land.
Required
a. Was this event an asset source, use, or exchange transaction for Riley Company?
b. Was this event an asset source, use, or exchange transaction for Smally Company?
c. Was the cash flow an operating, investing, or financing activity on Riley Company’s 2016 statement of cash flows?
d. Was the cash flow an operating, investing, or financing activity on Smally Company’s 2016 Statement of cash flows?

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  • CreatedApril 20, 2015
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