* 11 0 9% 10:24 AM DO final - Read-only ... Ra Sign in to edit and save changes to ... 22) 22) The Fisher Corporation engaged in the following transactions during 2014. Fisher uses a perpetual inventory system: Apr.1 Purchased merchandise from a Mexican supplier at a cost of 100,000 pesos. The exchange rate on this date was $0.15 per peso. May 5 Paid for the merchandise. The exchange rate on this date was $0.16 per peso, Jun. 10 Sold goods to a US. buyer at a selling price of $80,000 U.S. dollars. The exchange rate on this date was $105 Canadian dollars for each U.S. dollar. Ignore the journal entry to record cost of goods sold Jul. 30 Received payment from the US. buyer for the goods sold on June 10. The exchange rate on this date was $1.02 Canadian dollars for each U.S. dollar a) Prepare the joumal entries necessary to record each of the above transactions b) During the periods of time covered by the transactions, was the Canadian dollar getting stronger or weaker relative to the Mexican peso and the US dollar? 23) 23) State whether each event below should be classified as an operating activity, investing to schedule or note of noncash investing and getting stronger or weaker en 23) 23) State whether each event below should be classified as an operating activity, investing activity, financing activity, shown in a separate schedule or note of noncash investing and financing activities, or not disclosed on the cash flow statement a) Paid for merchandise purchased on account b) Received stock dividends c) Received cash dividends d) Paid interest on a short-term note payable e) Retired bonds payable by issuing common shares 1 Issued common shares for cash g) Issued preferred shares in exchange for land h) Paid for a three-year insurance policy on property i) Purchased equipment for cash i) Purchased shares for cash to hold as a long-term investment * 46 9% 10:25 AM OD final - Read-only Sign in to edit and save changes to .... 24) 24) The following selected data for Skyway Corporation for the year ended December 31, 2014, is available to you for preparing the cash flow statement Cost of goods sold Amortization expense Income tax expense Other operating expenses Loss on sale of investments Gain on sale of property. plant, and equipment $56,500 14,100 2,300 17,700 1,400 Sales revenue Interest revenue Dividend revenue Salary expense Interest expense $97,300 4,100 3,600 24,000 5.900 7,200 The cash account began the year with a balance of $15,000 and ended the year with a balance of $195,800 Accounts receivable decreased $ 13,600 Inventory increased 6,800 Prepaid expenses decreased 2,700 Accounts payable increased 21,400 Salary payable increased 1,500 Accrued liabilities decreased 4.300 Income tax payable increased 800 Acquisition of property, plant, and equipment 46,000 Issuance of common shares 125,000 Cash received from sale of investments 35,000 Collection of loan principal 22,600 Payment of dividends 15,000 Purchased equipment by signing a note payable 20,000 Cash received from sale of property, plant, and equipment 31,700 Prepare the cash flow statement for Skyway Corporation for the year ended December 31, 2014, using the indirect method, and include a schedule of noncash investing and financing activities if necessary. 2014, using the indirect method, and include a schedule of noncash investing and financing activities if necessary. 25) Data for the most recent four fiscal years of Colt Corporation are given below: Net Sales Cost of goods sold Gross margin Operating expenses Net income 2014 $78,000 33,000 45,000 25,000 20,000 2013 75,000 32,000 43,000 22,000 21,000 2012 $67,000 30,000 37,000 19,000 18,000 2011 $60,000 26,000 34,000 14,000 20,000 a) Prepare an analysis showing the trend percentages for the four-year period using 2007 as the base year. b) What do the trend percentages indicate regarding Colt Corporation's income statement data? I 26 26) Roth Corporation used the equitv method to report the following transactions for the vears 2013 and 2014: ogle.com/mail/u/0/?tab=wm&ogbl#inbox/FMfcgxwJXLhBCzMjVXJsbzwSwqVqQZdF?projector=1&messagePartid=0.1 26) Roth Corporation used the equity method to report the following transactions for the years 2013 and 2014: 26) 2013 Feb. 2 $500,000 Purchased 40% of the voting common shares of Dunn Enterprises Inc. for This is a long-term investment giving Roth Corporation significant influence over the operations of Dunn Enterprises Inc. Oct. 15 Received $20,000 cash dividends on Dunn Enterprises Inc. common shares Dec. 31 Dunn Enterprises Inc reported total income of $190,000 for the year ended December 31, 2013 2014 Jun 30 Dunn Enterprises Inc, reported total income of $40,000 for the six months ended June 30, 2014 30 Sold one-half of the Dunn Enterprises Inc shares for $275,000 Prepare journal entries to record the above transactions I Page 6 3 * 11 0 9% 10:24 AM DO final - Read-only ... Ra Sign in to edit and save changes to ... 22) 22) The Fisher Corporation engaged in the following transactions during 2014. Fisher uses a perpetual inventory system: Apr.1 Purchased merchandise from a Mexican supplier at a cost of 100,000 pesos. The exchange rate on this date was $0.15 per peso. May 5 Paid for the merchandise. The exchange rate on this date was $0.16 per peso, Jun. 10 Sold goods to a US. buyer at a selling price of $80,000 U.S. dollars. The exchange rate on this date was $105 Canadian dollars for each U.S. dollar. Ignore the journal entry to record cost of goods sold Jul. 30 Received payment from the US. buyer for the goods sold on June 10. The exchange rate on this date was $1.02 Canadian dollars for each U.S. dollar a) Prepare the joumal entries necessary to record each of the above transactions b) During the periods of time covered by the transactions, was the Canadian dollar getting stronger or weaker relative to the Mexican peso and the US dollar? 23) 23) State whether each event below should be classified as an operating activity, investing to schedule or note of noncash investing and getting stronger or weaker en 23) 23) State whether each event below should be classified as an operating activity, investing activity, financing activity, shown in a separate schedule or note of noncash investing and financing activities, or not disclosed on the cash flow statement a) Paid for merchandise purchased on account b) Received stock dividends c) Received cash dividends d) Paid interest on a short-term note payable e) Retired bonds payable by issuing common shares 1 Issued common shares for cash g) Issued preferred shares in exchange for land h) Paid for a three-year insurance policy on property i) Purchased equipment for cash i) Purchased shares for cash to hold as a long-term investment * 46 9% 10:25 AM OD final - Read-only Sign in to edit and save changes to .... 24) 24) The following selected data for Skyway Corporation for the year ended December 31, 2014, is available to you for preparing the cash flow statement Cost of goods sold Amortization expense Income tax expense Other operating expenses Loss on sale of investments Gain on sale of property. plant, and equipment $56,500 14,100 2,300 17,700 1,400 Sales revenue Interest revenue Dividend revenue Salary expense Interest expense $97,300 4,100 3,600 24,000 5.900 7,200 The cash account began the year with a balance of $15,000 and ended the year with a balance of $195,800 Accounts receivable decreased $ 13,600 Inventory increased 6,800 Prepaid expenses decreased 2,700 Accounts payable increased 21,400 Salary payable increased 1,500 Accrued liabilities decreased 4.300 Income tax payable increased 800 Acquisition of property, plant, and equipment 46,000 Issuance of common shares 125,000 Cash received from sale of investments 35,000 Collection of loan principal 22,600 Payment of dividends 15,000 Purchased equipment by signing a note payable 20,000 Cash received from sale of property, plant, and equipment 31,700 Prepare the cash flow statement for Skyway Corporation for the year ended December 31, 2014, using the indirect method, and include a schedule of noncash investing and financing activities if necessary. 2014, using the indirect method, and include a schedule of noncash investing and financing activities if necessary. 25) Data for the most recent four fiscal years of Colt Corporation are given below: Net Sales Cost of goods sold Gross margin Operating expenses Net income 2014 $78,000 33,000 45,000 25,000 20,000 2013 75,000 32,000 43,000 22,000 21,000 2012 $67,000 30,000 37,000 19,000 18,000 2011 $60,000 26,000 34,000 14,000 20,000 a) Prepare an analysis showing the trend percentages for the four-year period using 2007 as the base year. b) What do the trend percentages indicate regarding Colt Corporation's income statement data? I 26 26) Roth Corporation used the equitv method to report the following transactions for the vears 2013 and 2014: ogle.com/mail/u/0/?tab=wm&ogbl#inbox/FMfcgxwJXLhBCzMjVXJsbzwSwqVqQZdF?projector=1&messagePartid=0.1 26) Roth Corporation used the equity method to report the following transactions for the years 2013 and 2014: 26) 2013 Feb. 2 $500,000 Purchased 40% of the voting common shares of Dunn Enterprises Inc. for This is a long-term investment giving Roth Corporation significant influence over the operations of Dunn Enterprises Inc. Oct. 15 Received $20,000 cash dividends on Dunn Enterprises Inc. common shares Dec. 31 Dunn Enterprises Inc reported total income of $190,000 for the year ended December 31, 2013 2014 Jun 30 Dunn Enterprises Inc, reported total income of $40,000 for the six months ended June 30, 2014 30 Sold one-half of the Dunn Enterprises Inc shares for $275,000 Prepare journal entries to record the above transactions I Page 6 3