Sale of Equipment

Equipment was acquired at the beginning of the year at a cost of $29,500. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $570.

a. What was the depreciation for the first year?
$

b. Assuming the equipment was sold at the end of year 2 for $6,820, determine the gain or loss on the sale of the equipment.
$

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Sale of Equipment Equipment was acquired at the beginning of the year at a cost of $575,000. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $44,745. a. What was the depreciation for the first year? Round your answer to the nearest cent. $ b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $98,037. Round your answer to the nearest cent and enter as a positive amount. $ c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

Equipment was acquired at the beginning of the year at a cost of $75,720. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,920.

Required:

Equipment was acquired at the beginning of the year at a cost of $79,560. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,800.

a. What was the depreciation expense for the first year?
$

b. Assuming the equipment was sold at the end of the second year for $60,100, determine the gain or loss on sale of the equipment.
$   

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank or enter "0".

Computer equipment was acquired at the beginning of the year at a cost of $27,500 that has an estimated residual value of $1,700 and an estimated useful life of 5 years.

a. Determine the depreciable cost.
$

b. Determine the double-declining-balance rate.
%

c. Determine the double-declining-balance depreciation for the first year.
$

Equipment was acquired at the beginning of the year at a cost of $40,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $780. a. What was the depreciation for the first year?

b. Assuming the equipment was sold at the end of year 2 for $9,240, determine the gain or loss on the sale of the equipment. $fill in the blank

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $40,600. a. What was the depreciation for the first year? Round your answer to the nearest cent.

b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $92,889. Round your answer to the nearest cent and enter as a positive amount.

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was depreciated using the A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.double-declining-balance method based on an estimated useful life of ten years and an estimated The estimated value of a fixed asset at the end of its useful life.residual value of $680.

a. What was the The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.depreciation for the first year?
$

b. Assuming the equipment was sold at the end of year 2 for $8,090, determine the gain or loss on the sale of the equipment.
$ Loss

• Gain
• Loss

Feedback

Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated depreciation account is zero.

Compare the book value to the sale price. If the book value is more than the sale price, the equipment was sold for a loss. If the book value is less than the sale price, the equipment was sold for a gain.

Learning Objective 3.

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

The comparative balance sheets of Coronado Inc. at the beginning and the end of the year 2020 are as follows.

Net income of $47,200 was reported, and dividends of $27,680 were paid in 2020. New equipment was purchased and none was sold.

Prepare a statement of cash flows for the year 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The following data are from the accounts of Color Corp. at December 31, 2020

Retained earnings, beginning balance--------------------------------------------------------- $900,000

Common stock, $____ par, 100,000 shares authorized, 50,000 shares issued -----------------1,000,000

Treasury stock, 1,000 shares --------------------------------------------------------------------20,000

Paid-in capital in excess of par – Common stock ---------------------------------------------400,000

Bonds Payable ----------------------------------------------------------------------------------200,000

Net income for 2020 (not included in retained earnings above)-----------------------------190,000

Dividends declared and paid during 2020 (not included in retained earnings above)-------80,000

Required:

1. Determine the value of the following items. Type/write your response after each item where indicated.
   1. Total retained earnings at end of 2020
   2. Total stockholders’ equity
   3. Average original selling price per share
   4. Par value per share of common stock   
   5. Cost per share of treasury stock
   6. Number of shares of common stock outstanding

2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2020