Cushenberry Corporation had the following transactions. 1. 2. 3. 4. 5. 6. Sold land (cost $12,000) for $15,000. Issued common stock at par for $20,000. Recorded depreciation on buildings for $17,000. Paid salaries of $9,000. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200. (b) For each transaction above indicate how it would affect the statement of cash flows using the indirect method.

Assume the following: Lomo Engineering Company had the following transactions: Jan-01           Issued capital stock for $965,000. Jan-01          Purchased a Packaging Equipment for $20,000. Jan-01          Purchased an Insurance Policy (1 year) for $30,000. Jan-03          Purchased a Machine, paying $15,000 in cash and issuing a note of $20,000. Jan-05          Purchased $28,000 of inventory on account. Jan-07          Sold inventory costing $6,000 for $50,000 on account. Jan-11          Paid $2,000 for inventory purchased on account (from Jan-05). Jan-15          Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17          Paid utility bills totaling $1,500. Jan-23          Paid wages for $13,000. Jan-25          Collect $8,000 in bank interest. Jan-30     Paid $12,590 due to income taxes.               Required: Record the above transactions in General Journal (Journal Entries). Record the transactions in General Ledger format (T-Accounts). Prepare a…

Zaire Company had a $26,000 net loss from operations. Depreciation expense for the year was $9,600, and a dividend of $2,000 was declared and paid. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows:   End Beginning Cash $3,500 $7,000 Accounts receivable 16,000 27,000 Inventory 51,000 53,000 Prepaid expenses 5,000 9,000 Accounts payable 12,000 8,000 Accrued liabilities 6,000 7,600 Did Zaire Company’s operating activities provide or use cash? Use the indirect method to determine your answer. Use negative signs with cash outflow answers and to indicate operating activities used cash, if applicable.

14. How much is the correct balance of the Accumulated retained earnings unappropriated account?

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am. 76.

Powder Company spent $240,000 to acquire all of Sawmill Corporation's stock on January 1, 20X2. The balance sheets of the two companies on December 31, 20X3, showed the following amounts: Cash Accounts Receivable Land Buildings and Equipment Less: Accumulated Depreciation Investment in Sawmill Corporation Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings Powder Company $ 30,000 100,000 60,000 500,000 (230,000) 252,000 $ 712,000 $ 80,000 40,000 100,000 200,000 292,000 $ 712,000 Sawmill Corporation $ 20,000 40,000 50,000 350,000 (75,000) $385,000 $ 10,000 70,000 85,000 100,000 120,000 $385,000 Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume Sawmill's accumulated depreciation on the acquisition date was $25,000. Required: Prepare a consolidated…

Arizona Corp. had the following account balances at 12/1/19:  Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000.   Several of Arizona's accounts have fair values that differ from book value. The fair values are: Land — $480,000; Building — $720,000; Inventory — $336,000; and Liabilities — $396,000.   Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000.     Imagine you are the decision maker at Inglewood Inc.   Prepare a fair value allocation and goodwill schedule at the date of the acquisition.    Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationa