Relationship of Cash Flows to Accrual Accounting
(A) the 2014

Relationship of cash flows to accrual accounting
(a) The 2014 statement of cash flows of Citation Corporation shows the amount of Cash receipts from customers as $800,000. Statements of financial position report accounts receivable to be $70,000 at 1 January and $100,000 at 31 December 2014. Compute the amount of net sales reported in Citation Corporation's income statement for 2014 $_______________
(b) The supplementary schedule for noncash investing and financing activities accompanying Citation Corporation's 2014 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 2014 income statement reports a $61,000 loss on the disposal of land. Give the journal entry made by Citation in 2014 to record this sale of land.