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1. Orchard Company completed its first year of operations on December 31, 2012. Its initial income statement showed that Orchard had revenues of $198,000 and operating expenses of $83,000. Accounts receivable and accounts payable at year-end were $60,000 and $23,000, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.
Instructions
Compute net cash provided by operating activities using the direct method.
Maple Corp. owns a building with an original cost of $1,000,000 and accumulated depreciation at the balance sheet date of $200,000. Based on a recent appraisal, the fair value of the building is $850,000.
Journalize the transaction using Perpetual & Periodic Inventory System: Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30.
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Record the entries for the purchase of the net assets of Eagle by Mans (statutory merger) at the following cash prices:
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