Relationship of Cash Flows to Accrual Accounting
(A) the 2010

Relationship of cash flows to accrual accounting
(a) The 2010 statement of cash flows of Citation Corporation shows the amount of cash received from customers as $800,000. Comparative balance sheets report accounts receivable to be $70,000 at January 1 and $100,000 at December 31, 2010. Compute the amount of net sales reported in Citation Corporation's income statement for 2010: $_______________
(b) The supplementary schedule for noncash investing and financing activities accompanying Citation Corporation's 2010 statement of cash flows disclosed the following:
$\begin{array}{|l|c|}\hline \text { Sales of land } & \$ 1,400,000 \\\hline \text { Less: portion consisting of long-term note receivable } & (\$ 850,000) \\\hline \text { Proceeds from sale of land } & \$ 550,000 \\\hline\end{array}$
Citation Corporation's 2010 income statement reports a $61,000 loss on the disposal of land. Prepare the journal entry made by Citation in 2010 to record this sale of land.