Question
In: Accounting
An analysis of the general ledger accounts indicates that office equipment, which cost $202,500 and on...
An analysis of the general ledger accounts indicates that office equipment, which cost $202,500 and on which accumulated depreciation totaled $84,375 on the date of sale, was sold for $101,250 during the year.
Using this information, indicate the items to be reported on the statement of cash flows.
| Transaction | Section of Statement of Cash Flows | Added or Deducted |
| $202,500 cost of office equipment | ||
| $84,375 accumulated depreciation | ||
| $101,250 sales price | ||
| $16,875 loss on sale of equipment (assume the indirect method is used) |
Solutions
Expert Solution
| Working Notes: | |||
| Calculation of Gain or loss on Sale of Equipment | |||
| Cost of Equipment | $ 202,500 | ||
| Less: Accumulated Depreciation | $ 84,375 | ||
| Book Value of the Equipment | $ 118,125 | ||
| Less: Sales Value of the Equipment | $ 101,250 | ||
| Loss on Sales of Equipment | $ 16,875 | ||
| Solution: | |||
| Transaction | Section of Statement of Cash Flow | Added or Deducted | |
| $202,500 cost of office equipment | Not Reported | ||
| $84,375 accumulated depreciation | Not Reported | ||
| $101,250 sales price | Cash Flow From investing activities | Added | |
| $16,875 loss on sale of equipment | Cash Flow From operating Activities | Added | |
ekkarill92 answered 2 years agoRelated Solutions
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Received cash from customers on account, $5,060.
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Paid creditor on account, $1,480.
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Oct.
1
Paid rent for the month, $2,100.
3
Paid advertising expense, $650.
5
Paid cash for supplies, $1,350.
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Purchased office equipment on account, $9,300.
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Mar.
1
Paid rent for the month, $4,000.
3
Paid advertising expense, $1,350.
5
Paid cash for supplies, $1,800.
6
Purchased office equipment on account, $11,500.
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Paid rent for the month, $4,200.
3.
Paid advertising expense, $2,690.
5.
Paid cash for supplies, $1,150.
6.
Purchased office equipment on account, $17,700.
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Prepare General Ledger, Accounts Receivable Ledger, Accounts
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Schedule of Accounts Payable from the following information and
Journals using T Accounts with a balance column.
Grassley Company completes these transactions during November of
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n/30).
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2 Borrowed $88, 500 cash from Wisconsin Bank...
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12/12/2017
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12/15/2017...
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Date
Account and Explanation
Post
Ref.
Debit
Credit
Jun
1
Cash
104,000
Jun
1
Capital
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Jun
1
Music Equipment
48,000
Jun
1
Cash
48,000
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Jun
1
Cash
186,000
Jun
1
Bank Loan Payable
186,000
(received cash loan)...
Journalizing Purchases Returns and Allowances and Posting to General Ledger and Accounts Payable Ledger Using page...
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General Ledger and Accounts Payable Ledger
Using page 3 of a general journal and the following general
ledger accounts and accounts payable ledger accounts, journalize
and post the following transactions:
Mar. 5
Returned merchandise to Tower Industries, $560.
11
Returned merchandise to A & D Arms, $600.
23
Returned merchandise to Mighty Mansion, $290.
General Ledger
Account No.
Account
Balance Mar 1, 20--
202
Accounts Payable
$8,440
501.1
Purchases Returns and Allowances...
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