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Business
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Beginning balance Purchase of assets Sale of assets Ending balance Beginning balance 2021 depreciation Sale of assets Ending balance Cost Furniture Accumulated Depreciation 109.000 119,000 45,000 Accumulated depreciation Book value (Cash received) 109,000 71,400 55,000 37,600 0

Beginning balance Purchase of assets Sale of assets Ending balance Beginning balance 2021 depreciation Sale of assets Ending balance Cost Furniture Accumulated Depreciation 109.000 119,000 45,000 Accumulated depreciation Book value (Cash received) 109,000 71,400 55,000 37,600 0

FINANCIAL ACCOUNTING
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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Furniture costing $55,000 is sold at its book value in 2021. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Beginning balance Purchase of assets Sale of assets Ending balance Beginning balance 2021 depreciation Sale of assets Furniture Ending balance Accumulated Depreciation 109,000 119,000 45,000 Cost Accumulated depreciation Book value (Cash received) 109,000 71,400 $ 55,000 37,600 0
Transcribed Image Text:Furniture costing $55,000 is sold at its book value in 2021. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Beginning balance Purchase of assets Sale of assets Ending balance Beginning balance 2021 depreciation Sale of assets Furniture Ending balance Accumulated Depreciation 109,000 119,000 45,000 Cost Accumulated depreciation Book value (Cash received) 109,000 71,400 $ 55,000 37,600 0
QS 12-13 (Static) Computing cash from asset sales LO P3 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2021 $ 94,800 41,000 85,800 5,400 Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income 227,000 109,000 (17,000) $319,000 $ 15,000 9,000 1,400 25,400 29,000 54,400 229,000 35,600 $ 319,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 2020 $ 24,000 $1,000 95,800 4,200 175,000 119,000 (2,000) $285,000 $ 21,000 5,000 2,600 28,600 69,000 97,600 179,000 8,400 $ 285,000 $ 480,000 314,000 174,000 89,100 37,600 47,300 17,300 $30,000 Furniture costing $55,000 is sold at its book value in 2021 Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture.
Transcribed Image Text:QS 12-13 (Static) Computing cash from asset sales LO P3 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2021 $ 94,800 41,000 85,800 5,400 Operating expenses (excluding depreciation) Depreciation expense Income before taxes. Income taxes expense Net income 227,000 109,000 (17,000) $319,000 $ 15,000 9,000 1,400 25,400 29,000 54,400 229,000 35,600 $ 319,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 2020 $ 24,000 $1,000 95,800 4,200 175,000 119,000 (2,000) $285,000 $ 21,000 5,000 2,600 28,600 69,000 97,600 179,000 8,400 $ 285,000 $ 480,000 314,000 174,000 89,100 37,600 47,300 17,300 $30,000 Furniture costing $55,000 is sold at its book value in 2021 Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture.
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