1. In order to produce the new flavours GTI decided to exchanged equipment with Nova Inc., another beverage manufacturer, on October 1, 2022. The equipment obtained from Nova has the necessary straining mechanism that will allow GTI to produce the new flavours and therefore increase sales moving forward. GTI has the following information about the equipment:

	GTIs Equipment	Novas Equipment
Original cost	$248,000	-
Accumulated Depr.	$193,400	-
Fair value	$57,800	$65,100
Cash paid	$5,500	-

No entry has been made, as yet, by GTI to record the exchange. What are the appropriate entries?

2. Food Mart Ltd. paid GTI an upfront, non-refundable, licence fee on October 1, 2022, the day the contract was signed, of $180,000. The contract requires that, in return, GTI provide product placement and promotion support to all Food Mart locations for the duration of the contract period. GTI has reported the fee as revenue on October 1, 2022.

What are the appropriate entries?

3. GTI has not, as yet, developed the financing section of the statement of cash flows. The following information is available:

	2022	2021
Accounts payable	$248,000	$261,300
Income tax payable	$47,200	$45,400
Deferred revenue	$15,900	$18,600
Dividends payable	$40,000	$20,000
Current portion of long term debt	$400,000	$40,000
Long term debt	$550,000	$800,000
Common shares	$1,200,000	$1,100,000
Retained earnings	$1,317,000	$1,052,000

The following additional information is available:

1. The company paid dividends during the year.
2. Net income for the year was $425,000.
3. Common shares were issued during the year in exchange for equipment. No shares were repurchased.
4. The company purchased new equipment for $250,000, issuing a $150,000 bank loan and paying the remainder in cash. In addition, the bank loan decreased by repayments.

The company has asked you to provide the financing activities section of the statement of cash flows for the year.

Please if you can, I need the answer within the next 40 minutes. Please and thank you!