please show formulas and work for each answer. please calculate cash received from sale During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from thecompany's accounting records:From the Income StatementDepreciation expenseLoss on sale of equipmentFrom the Balance SheetBeginning equipmentEnding equipmentBeginning accumulated depreciationEnding accumulated depreciation9904, 00019,10011,8001,9501,798No new equipment was bought during the period.Required:1. For the equlpment that was sold, determine its original cost, Its accumulated depreciation, and the cash received from the sale. (Usethe equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.)Cost of oquipment sold7,300Accumulated depreciation on sold equipment1,150Cash received from sale2. Sanchez Company uses the Indirect method for the Operating Activities section of the cash flow statement. What amount related tothe sale would be added or subtracted in thevalue.)tion of Net Cash Flows from Operating Activities?(Input the amount as positiveTheloss2$4,000 would beadded3. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing Activities?(Input the amount as positive value.)The cashinflowEwould beadded

Name: please show formulas and work for each answer. please calculate cash r
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: please show formulas and work for each answer. please calculate cash received from sale During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from thecompany's accounting records:From the Inc

Equipment is a fixed asset as considered as an investment for a Company . When it is purchased or…

Business

Accounting

he period, Sanchez Company sold some excess equipment at a loss. The following information wa y's accounting records: he Income Statenent ciation expense on sale of equipment he Balance Sheet ning equipment equipment ning accumulated depreciation accumulated depreciation 990 4,000 19,100 11,800 1,950 1,790 equipment was bought during the perlod. d: e equloment that was solci determine Ite oricinal coet ite accumulated denreciation and the cach

he period, Sanchez Company sold some excess equipment at a loss. The following information wa y's accounting records: he Income Statenent ciation expense on sale of equipment he Balance Sheet ning equipment equipment ning accumulated depreciation accumulated depreciation 990 4,000 19,100 11,800 1,950 1,790 equipment was bought during the perlod. d: e equloment that was solci determine Ite oricinal coet ite accumulated denreciation and the cach

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1DC

See similar textbooks

Similar questions

During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company's accounting records: From the Income Statement. Depreciation expense Loss on sale of equipment From the Balance Sheet Beginning equipment. Ending equipment Beginning accumulated depreciation Ending accumulated depreciation No new equipment was bought during the period. Required: 1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) 2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities? 3. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing…
(a) Sheridan Company retires its delivery equipment, which cost $47,790. Accumulated depreciation is also $47,790 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,660 instead of $47,790. No. Account Titles and Explanation (a) Accumulated Depreciation-Equipment Equipment (b) Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment Debit Credit I
The Bacon Company acquired new machinery with a price of $13,166 by trading in similar old machinery and paying $11,849.40. The old machinery originally cost $8,904 and had accumulated depreciation of $7,123.20. In recording this transaction, what should Bacon Company record? a.the new machinery at $11,849.40 b.a loss of $464.20 c.the new machinery at $11,385.20 d.a gain of $464.20
The T accounts for equipment and accumulated depreciation for Pharoah Ltd. are shown here: Equipment Beg. bal. 86,000 Disposals 21,000 Acquisitions 42,000 End bal. 107,000 Accumulated Depreciation-Equipment Disposals 5,700 Beg. bal. 44,900 Depreciation 20,400 End bal. 59,600 In addition, Pharoah’s income statement reported a $1,600 loss on the disposal of equipment. What amount was reported on the statement of cash flows as “cash provided by disposal of equipment”? Cash provided by disposal of equipment $Enter the amount of cash provided by disposal of equipment eTextbook and Media In what section of the statement of cash flows would the effects of this disposal transaction be reported? Select a section for cash provided by disposal of equipment Select a section…
The T accounts for equipment and accumulated depreciation for Pharoah Ltd. are shown here: Equipment Beg. bal. 86,000 Disposals 21,000 Acquisitions 42,000 End bal. 107,000 Accumulated Depreciation-Equipment Disposals 5,700 Beg. bal. 44,900 Depreciation 20,400 End bal. 59,600 In addition, Pharoah’s income statement reported a $1,600 loss on the disposal of equipment. What amount was reported on the statement of cash flows as “cash provided by disposal of equipment”? Cash provided by disposal of equipment $Enter the amount of cash provided by disposal of equipment
Equipment that cost 412000 and on which 191000 of accumulated depreciation has been recorded was disposed of for 181000 cash. The entry to record this event would include a ? Equipment that cost $412000 and on which $191000 of accumulated depreciation has been recorded was disposed of for $181000 cash. The entry to record this event would include a O credit to Accumulated Depreciation for $191000. Ogain of $40000. credit to the Equipment account for $221000. loss of $40000.
a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. d. Assuming that the equipment had been sold on January 3 of Year 4 for $410,485 instead of $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
Prepare journal entries to record these transactions. (a) Echo Company retires its delivery equipment, which cost $41000. Accumulated depreciation is also $41000 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), expcept that accumulated depreciation for the equipment is $37200 instead of $41000.
Smile company exchanged used equipment for another equipment of Frown Company. The following information pertains to the exchange: Smile FrownEquipment 2, 400, 000 2, 200, 000Accumulated Depreciation 2, 000, 000 1, 750, 000Fair value of equipment 500, 000 500, 000 Required: Journal entries on the books of smile and frown
A financial analyst is studying the income statement eff ect of two alternative depreciationmethods for a recently acquired piece of equipment. She gathers the following information about the equipment’s expected production life and use:Year 1 Year 2 Year 3 Year 4 Year 5 TotalUnits of production 2,000 2,000 2,000 2,000 2,500 10,500Compared with the units-of-production method of depreciation, if the company uses thestraight-line method to depreciate the equipment, its net income in Year 1 will most likely be:A. lower.B. higher.C. the same
> Equipment was acquired at the beginning of the year at a cost of $77,880. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,500. a. What was the depreciation expense for the first year? b. Assuming the equipment was sold at the end of the second year for $58,800, determine the gain or loss on the sale of the equipment. c. Journalize the entry for the sale. If an amount box does not require an entry, leave it blank. ?
Uno Company sold office equipment with a cost of $44,560 and accumulated depreciation of $40,255 for $6,120. Required a. What is the book value of the asset at the time of sale? b. What is the amount of gain or loss on the disposal? (Loss amount should be indicated with a minus sign.) c. How would the sale affect net income (increase, decrease, no effect) and by how much? d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section? a Book value b. Gain (loss) on sale c. Net income would by d. Total assets would by е. Cash flow would by Section