Accounts Payable had a normal beginning balance of $500. During the period, the company made purchases on account of $1,000 and paid cash on account of $400. What was the ending balance? What is the gain or loss on the sale of an asset that originally cost $20,000, has accumulated depreciation of $10,000, and is sold for $12, 000? Group of answer choices $2,000 gain $10,000 loss $3,000 gain $12,000 gain

Accounts Payable had a normal beginning balance of $500. During the period, the company made purchases on account of $1,000 and paid cash on account of $400. What was the ending balance? What is the gain or loss on the sale of an asset that originally cost $20,000, has accumulated depreciation of $10,000, and is sold for $12, 000? Group of answer choices $2,000 gain $10,000 loss $3,000 gain $12,000 gain

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please help me to answer the Required 2 using T-account for many missing amounts. Thank you so much!
Q1: MULTIPLE-CHOICE QUESTIONS 1. A company sells an old piece of equipment for $5,000 cash. The book value of the equipment sold is $4,500. Under indirect method, the gain of $500 ($5,000 $4,500) would affect. (a) operating activities section (b) investing activities section (c) financing activities section (d) notes to the financial statements. 2. Irene & Co. had sales of € 15,000 during 2004, 80% of them on credit and 20% for cash. During the year, trade and other receivables increased from € 1,200 to € 1,600, an increase of € 400. What amount of cash was received from customers during 2004? (a) € 15,400 (b) € 3,400 (c). € 3,000 (d). € 14,600 3. The cash flow direct method calculates cash generated from operations from (a). operating profit (b). analysis of all receipts and payments relating to operating activities (c). analysis of the changes in cash and overdraft levels (d) changes in working capital 4. The cash flow indirect method calculates cash generated from operations…
Q1: MULTIPLE-CHOICE QUESTIONS 1. A company sells an old piece of equipment for $5,000 cash. The book value of the equipment sold is $4,500. Under indirect method, the gain of $500 ($5,000 $4,500) would affect. (a) operating activities section (b) investing activities section (c) financing activities section (d) notes to the financial statements. 2. Irene & Co. had sales of € 15,000 during 2004, 80% of them on credit and 20% for cash. During the year, trade and other receivables increased from € 1,200 to € 1,600, an increase of € 400. What amount of cash was received from customers during 2004? (a) € 15,400 (b) € 3,400 (c). € 3,000 (d). € 14,600 3. The cash flow direct method calculates cash generated from operations from (a). operating profit (b). analysis of all receipts and payments relating to operating activities (c). analysis of the changes in cash and overdraft levels (d) changes in working capital
Which option A, B, C, D
An asset which costs $25,000 and has accumulated depreciation of $6,000 is sold for $11,000. What amount of gain or loss will be recognized when the asset is sold? a. A gain of $14,000 b. A loss of $14,000 c. A gain of $8,000 d. A loss of $8,000
A truck with an original with an original cost of $ 22,000 and book value of $5,000 was sold for $4000 cash. The loss on sale would be reflected on the cash flow statement as a $22,000 subtraction under investing activities. $1000 subtraction under investing activities. $4,000 addition under operating activities. $1,000 addition under operating activities.
9. AB Company sells machinery for $10,000. They originally purchased it for $15,000 and have depreciated $10,000. Complete the journal entry for the sale Account Debit Credit
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