## Accounting for Disposal of Shelving Units**Scenario:**At the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $1,310 cash. These shelves originally cost $8,440 and were depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $740.**Task:**Complete the accounting equation below, indicating the account, amount, and effect of disposal. Assume that depreciation has been recorded up to the date of sale. *(Enter any decreases to Assets, Liabilities, or Stockholders’ Equity with a minus sign. Do not round intermediate calculations.)*### Accounting Equation Table:#### Assets1. _____________________2. _____________________3. _____________________ #### Liabilities1. _____________________2. _____________________3. _____________________#### Stockholders’ Equity1. _____________________2. _____________________3. _____________________The table provides placeholders for entering changes to each component of the accounting equation. Ensure to indicate increases or decreases appropriately, especially reflecting any losses or gains from the sale on the stockholders' equity.

As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $1,310 cash. The shelves originally cost $8,440 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $740. quired: Complete the accounting equation below, indicating the account, amount, and the effect of disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.)

As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Incorporated, sold shelving units (recorded as Equipment) that were 10 years old for $1,310 cash. The shelves originally cost $8,440 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $740. quired: Complete the accounting equation below, indicating the account, amount, and the effect of disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.)

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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