The loss on the cash sale of equipment was $20,125 (details in b). Sold equipment costing 591,875, with accumulated depreciation of $45,125, for $26, 625 cash. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term notes payable for the balance. Paid $52,125 cash to reduce the long-term notes payable. Issued 4,000 shares of common stock for $20 cash per share. Declared and paid cash dividends of $53, 100. Required: 1. Prepare a complete statement ofcash flows using the indirect method for the current year.

Step 1:Operating Activities:Net Income: Not provided. We'll need this information to…

Answered: The loss on the cash sale of equipment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nevada Gold Company (LLC) purchased a gold deposit for $1,500,000. It estimated it would extract 500,000 ounces of gold from the deposit. The company mined the gold and sold it, reporting gross receipts of $1.8 million, $2.5 million, and $2 million for Years 1 through 3, respectively. During Years 1 through 3, Nevada Gold reported net income (loss) from the gold deposit activity in the amount of ($100,000), $400,000, and $100,000, respectively. In Years 1 through 3, the company actually extracted 300,000 ounces of gold as follows: Ounces of Gold extracted per year Year 1 Year 2 Year 3 50,000 150,000 100,000 What is Nevada Gold's depletion deduction for Year 2 if the applicable percentage depletion for gold is 15 percent? Question 8 options: $450,000. $400,000. $375,000. $200,000.
Stuart Manufacturing Company was started on January 1, year 1, when it acquired $89,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $32,000 and $40,000, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $4,000 salvage value and an expected useful life of six years. The company paid $12,000 for salaries of administrative personnel and $21,000 for wages to production personnel. Finally, the company paid $26,000 for raw materials that were used to make inventory. All inventory was started and completed during the year. Stuart completed production on 10,000 units of product and sold 8,000 units at a price of $9 each in year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in year 1.…
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- $15,000 000 in respect of recovery of commercial debts for One-Third Tax Co. The company was not reimbursed this amount -$50,000 relating to the purchase of new subsidiary - $400,000 to increase the share capital of the company 8. General expenses include $72,000 for the school fees of the director's son The capital allowances have been calculated at $130,550 10. There was an increase in wages of $1,000,000 which qualifies for Employment Tax Credit (all 9. Full Tax Co. is incorporated and tax resident in Barbados. The audited financial statements for Full Tax Co. for year-end December 31, 2021, show an accounting profit after tax of $5,500,000 after charging other conditions to qualify for this credit was met). 11. The tax rates for general business in Barbados applies. the 12. Assume capital allowance rate of 5 % p.a for building/ leasehold improvements. following: 13. All amounts are in Barbadian currency. 14. As at the 31 December 2020, the company has prior years tax losses as…
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am. 102.
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Dillard Company starts the year with $10,000 in its cash account, $10,000 in its equipment account, $3,000 in accumulated depreciation and $17,000 in its retained earnings account. During the year Dillard sells the equipment for $6530. After the sale of equipment is recorded, the retained earnings account will have a balance of $________.
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On January 1, 20X7, Server Company purchased a machine with an expected economic life of five years. On January 1, 20X9, Server sold the machine to Patron Corporation and recorded the following entry: Cash Account Accumulated Depreciation Machine Gain on Sale of Equipment Debit Odebited for $25,000. O debited for $1,000. O credited for $45,000. Odebited for $15,000. 45,000 28,000 Credit 70,000 3,000 Patron Corporation holds 75 percent of Server's voting shares. Server reported net income of $50,000, and Patron reported income from its own operations of $100,000 for 20X9. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, in the preparation of the 20X9 consolidated balance sheet, in the consolidation entry machine will be:

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