FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 4, Problem 42E
To determine
Prepare the statement of
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On December 2, 2022, Pancit Manufacturing Company purchased goods with a cash price of P1,600,000. Some of the costs incurred in connection with the acquisition of the goods were as follows: Import duties, P160,000; transportation costs, P80,000; and handling costs, P40,000. These goods were received on December 31, 2022. In Pancit's December 31, 2022 balance sheet, at what amount should these goods be included in inventory?
1. During fiscal year 2018, Hoskins Corporation acquired new equipment for $1200 in cash. In addiiton, the company disposed of used equipment that had original cost of $1300 and accumulated depecreciation of $700, receiving $600 in cash from the buyer.
2. During fiscal year 2018, Hoskins Corporation arranged short-term bank financing and borrowed $1500, using a portion of the cash to repay all of its outstanding long-term debt.
3. During fiscal year 2018, Hoskins Corporation engaged in no transactions involving its common stock, though it did declare and pay in cash a common stock dividend of $250.
Prepare a statement of cash flows (all three sections) for Hoskins Corporation’s fiscal year 2018, using the indirect method for the cash from operations section.
Carolina Co. purchased a machine at a cost of $780,000 on January 1, 2016. On January 1, 2021, the balance of the Accumulated depreciation account on this old machine is $320,000; On that day, Carolina exchanged this old machine for a new machine (the transaction has commercial substance) which has a market value of $432,000. In addition, Carolina received $48,000 cash in the exchange.
Instructions
(1) Prepare all the necessary journal entries for Carolina Co. on January 1, 2021.
(2) Now, assume that the transaction lacks commercial substance and prepare all the necessary journal entries on January 1, 2021.
Chapter 4 Solutions
FINANCIAL ACCOUNTING
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