Sp Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3Analyze each of the following transactions by showing its effects on the accounting equation-specifically, Identify the accounts andamounts (including + or -) for each.January 1 Purchased equipment for $26,888 cash. Estimated useful life is six years and salvage value is $6,248.January 2 Paid $5,200 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value.August 15 Paid $210 cash for minor repair costs to equipment.DateJanuary 01January 01January 02January 02August 15EquipmentCashCashEquipmentCashager Assets(+) increase(-) decrease(-) decrease(+) increase(-) decrease26,0005,200210==m-=EquipmentLiabilities(-) decrease0++++Repairs exp

Accounting equation is a mathematical equation that shows relationship between assets, liabilities…

5 Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3 Analyze each of the following transactions by showing its effects on the accounting equation-specifically, Identify the accounts and amounts (including + or -) for each. January 1 Purchased equipment for $26,888 cash. Estimated useful life is six years and salvage value is $6,248. January 2 Paid $5,208 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $218 cash for minor repair costs to equipment. Date January 01 January 01 January 02 January 02 August 15 Equipment Cash Cash Equipment Cash Assets (+) increase (-) decrease (-) decrease (+) increase (-) decrease 26,000 5.200 210 = = = Equipment Liabilities (-) decrease 0 + + + + Repairs exp

5 Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3 Analyze each of the following transactions by showing its effects on the accounting equation-specifically, Identify the accounts and amounts (including + or -) for each. January 1 Purchased equipment for $26,888 cash. Estimated useful life is six years and salvage value is $6,248. January 2 Paid $5,208 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $218 cash for minor repair costs to equipment. Date January 01 January 01 January 02 January 02 August 15 Equipment Cash Cash Equipment Cash Assets (+) increase (-) decrease (-) decrease (+) increase (-) decrease 26,000 5.200 210 = = = Equipment Liabilities (-) decrease 0 + + + + Repairs exp

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 29P

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