Furniture costing $55,000 is sold at its book value in 2021. Acquisitions of furniture total $45,000 cash, on which no depreciation isnecessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale offurniture.Beginning balancePurchase of assetsSale of assetsEnding balanceBeginning balance2021 depreciationSale of assetsFurnitureEnding balanceAccumulated Depreciation109,000119,00045,000CostAccumulated depreciationBook value (Cash received)109,00071,400$55,00037,6000 QS 12-13 (Static) Computing cash from asset sales LO P3CRUZ, INCORPORATEDComparative Balance SheetsAt December 31AssetsCashAccounts receivable, netInventoryPrepaid expensesTotal current assetsFurnitureAccumulated depreciation-FurnitureTotal assetsLiabilities and EquityAccounts payableWages payableIncome taxes payableTotal current liabilitiesNotes payable (long-term)Total liabilitiesEquityCommon stock, $5 par valueRetained earningsTotal liabilities and equitySalesCost of goods soldGross profit2021$ 94,80041,00085,8005,400Operating expenses (excluding depreciation)Depreciation expenseIncome before taxes.Income taxes expenseNet income227,000109,000(17,000)$319,000$ 15,0009,0001,40025,40029,00054,400229,00035,600$ 319,000CRUZ, INCORPORATEDIncome StatementFor Year Ended December 31, 20212020$ 24,000$1,00095,8004,200175,000119,000(2,000)$285,000$ 21,0005,0002,60028,60069,00097,600179,0008,400$ 285,000$ 480,000314,000174,00089,10037,60047,30017,300$30,000Furniture costing $55,000 is sold at its book value in 2021 Acquisitions of furniture total $45,000 cash, on which no depreciation isnecessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale offurniture.

The depreciation expense is calculated as decrease in the value of the fixed assets with usage and…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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