Cheung Studios operates amusement parks in the United States and Canada. During 2018, it reported the following (in millions): From the incone statement Loss on sale of equipment Depreciation expense From the balance sheet Equipnent, beginning Equipnent, ending Accumulated depreciation, beginning Accumulated depreciation, ending $10 185 1,765 1,835 1,635 1,780 Equipment costing $200 was purchased during the year.
Cheung Studios operates amusement parks in the United States and Canada. During 2018, it reported the following (in millions): From the incone statement Loss on sale of equipment Depreciation expense From the balance sheet Equipnent, beginning Equipnent, ending Accumulated depreciation, beginning Accumulated depreciation, ending $10 185 1,765 1,835 1,635 1,780 Equipment costing $200 was purchased during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cheung Studios operates amusement parks in the United States and Canada. During 2018, it reported the following (in millions):
From the incone statement
Loss on sale of equipment
Depreciation expense
From the balance sheet
Equipnent, beginning
Equipnent, ending
Accumulated depreciation, beginning
Accumulated depreciation, ending
$ 10
185
1,765
1,835
1,635
1,780
Equipment costing $200 was purchased during the year.
Required:
For the equipment that was disposed of during the year, compute the following: (a) Its original cost, (b) its accumulated depreciation,
and (c) the cash received from the disposal. (Enter your answers in millions.)
$ in million
(0) Original cost of equipment sold
0) Accumulated Depreciation-Equipment
(e) Cash Received from Sale
Required information
(The following information applies to the questions displayed below.)
Part 1 of 2
Suppose your company sells services of $210 in exchange for $150 cash and $60 on account. Depreciation of $80
relating to equipment also is recorded.
Required:
1. Prepare the Jourmal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
A
B
Record the service revenue of $150 for cash and $60 on account.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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