The following data are from a company's comparative balance sheets. The current year income statement reports depreciationexpense on equipment of $7,200. During the year, equipment costing $21,000 was sold for its book value.At December 31EquipmentAccumulated depreciation-EquipmentCompute cash received from the sale of equipment.Current Year$ 52,800(35,480)Cost of equipment soldAccumulated depreciation at prior year-endIncrease from depreciation expenseTotal "expected" accumulated depreciationActual accumulated depreciation at current year-endAccumulated depreciation on sold equipmentCash received from sale of equipment at book value$$Prior Year$ 73,800(44,280)44,2807,20051,48035,480$21,000

The cash flow statement is prepared to record the cash flow from various activities during the…

The following data are from a company's comparative balance sheets. The current year income statement reports depreciation expense on equipment of $7,200. During the year, equipment costing $21,000 was sold for its book value. At December 31 Equipment Accumulated depreciation-Equipment Compute cash received from the sale of equipment. Cost of equipment sold Accumulated depreciation at prior year-end Increase from depreciation expense Total "expected" accumulated depreciation Actual accumulated depreciation at current year-end Accumulated depreciation on sold equipment Cash received from sale of equipment at book value Current Year $ 52,800 (35,480) $ $ Prior Year $ 73,800 (44,280) 44,280 7,200 51,480 35,480 $ 21,000

The following data are from a company's comparative balance sheets. The current year income statement reports depreciation expense on equipment of $7,200. During the year, equipment costing $21,000 was sold for its book value. At December 31 Equipment Accumulated depreciation-Equipment Compute cash received from the sale of equipment. Cost of equipment sold Accumulated depreciation at prior year-end Increase from depreciation expense Total "expected" accumulated depreciation Actual accumulated depreciation at current year-end Accumulated depreciation on sold equipment Cash received from sale of equipment at book value Current Year $ 52,800 (35,480) $ $ Prior Year $ 73,800 (44,280) 44,280 7,200 51,480 35,480 $ 21,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter6: Statement Of Cash Flows

Section: Chapter Questions

Problem 25E

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Reporting changes in equipment on statement of cash flows An analysis of the general ledger accounts indicates that delivery equipment, which cost 75,000 and on which accumulated depreciation totaled 58,000 on the date of sale, was sold for 20,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
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