In the preparation of the 20x4 consolidated balance sheet, the computer equipment will be: A. Debited for 1,000 B. Debited for 15,000 C. Credited for 24,000D. Debited for 40,000 On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years.OnJanuary 1, 20x4, Gold sold the computer to TLK Corporation and recorded the following entry:Cash39,00016,000Accumulated DepreciationComputer EquipmentGain on sale of equipment40,00015,000TLK Corporation holds 60 percent of Gold's voting shares. Gold reported net income of P45,000, and TLKreportedincome from its own operations of P85,000 for 20x4. There is no change in the estimated life ofthe equipment as a result of the inter-corporate transfer.

Answered: consolidated balance sheet

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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In the preparation of the 20x4 consolidated balance sheet, the computer equipment will be:

A. Debited for 1,000

B. Debited for 15,000

C. Credited for 24,000

D. Debited for 40,000

On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years.
OnJanuary 1, 20x4, Gold sold the computer to TLK Corporation and recorded the following entry:
Cash
39,000
16,000
Accumulated Depreciation
Computer Equipment
Gain on sale of equipment
40,000
15,000
TLK Corporation holds 60 percent of Gold's voting shares. Gold reported net income of P45,000, and TLK
reportedincome from its own operations of P85,000 for 20x4. There is no change in the estimated life of
the equipment as a result of the inter-corporate transfer.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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