The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date Debit Credit Balance
Jan. 1 Balance 158,000
July 31 Purchase of equipment 69,600 227,600
Sept. 2 Cost of equipment constructed 55,000 282,600
Nov. 10 Cost of equipment sold 49,500 233,100

Accumulated Depreciation—Equipment

Date Debit Credit Balance
Jan. 1 Balance 71,400
Nov. 10 Accumulated depreciation on equipment sold 28,900 42,500
Dec. 31 Depreciation for year 22,600 65,100

Retained Earnings

Date Debit Credit Balance
Jan. 1 Balance 104,200
Aug. 23 Dividends (cash) 17,800 86,400
Dec. 31 Net income 68,800 155,200

Required:
Indicate how the information is reported on a statement of cash flows using the indirect method.

In march 2018, the phillips tool company signed two purchase commitments. the first commitment requires phillips to purchase inventory for $110,000 by june 15, 2018. the second commitment requires the company to purchase inventory for $160,000 by august 20, 2018. the company's fiscal year-end is june 30. phillips uses a periodic inventory system. the first commitment is exercised on june 15, 2018, when the market price of the inventory purchased was $90,000. the second commitment was exercised on august 20, 2018, when the market price of the inventory purchased was $125,000. required: prepare the journal entries required on june 15, june 30, and august 20, 2018, to account for the two purchase commitments. assume that the market price of the inventory related to the outstanding purchase commitment was $144,000 at june 30. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)