During the period. Teen's Trends sold some excess equipment at a loss. The following information was collected from the company's accounting records: From the income statement Depreciation expense Loss on sale of equipment From the balance sheet Beginning equipment Ending equipment Beginning accumulated depreciation Ending accumulated depreciation 595 4,190 14,480 7,45e 3,900 3,15e No new equipment was bought during the period. Requlred: For the equipment that was sold, determine (a) its original cost, (b) its accumulated depreciation, and (c) the cash received from the sale. (a) Cost of equipment sold (b) Accumulated Depreciation-Equipment (c) Cash Received from Sale

During the period. Teen's Trends sold some excess equipment at a loss. The following information was collected from the company's accounting records: From the income statement Depreciation expense Loss on sale of equipment From the balance sheet Beginning equipment Ending equipment Beginning accumulated depreciation Ending accumulated depreciation 595 4,190 14,480 7,45e 3,900 3,15e No new equipment was bought during the period. Requlred: For the equipment that was sold, determine (a) its original cost, (b) its accumulated depreciation, and (c) the cash received from the sale. (a) Cost of equipment sold (b) Accumulated Depreciation-Equipment (c) Cash Received from Sale

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 recent years, Tamarisk Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below. Machine 2 1 3 (a1) Acquired Jan. 1, 2020 July 1, 2021 Nov. 1, 2021 Depreciable cost $ eTextbook and Media (a2) Save for Later For the declining-balance method, Tamarisk Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 39,000. Actual hours of use in the first 3 years were 2021, 700; 2022, 4,300; and 2023, 7,400. MACHINE 1 Cost $ 97,200 89,500 86,000 MACHINE 2 Salvage Value $ 13,000 10,000 8,000 For Machine #3, calculate depreciable cost per hour under units-of-activity method. MACHINE 3 Useful Life (in years) $ 8 Accumulated depreciation 5 6 Depreciation Method Compute the amount of accumulated…
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Hannam Co. decided to change from the declining-balance method of depreciation to the straight-line method effective 1 January 20X7. The following information was provided: Year 20X3* 20X4 20X5 20X6 Net Income as Reported $(31,800) 35,600 22,800 53,200 Excess of Declining-Balance Depreciation over straight- Line Depreciation $ 5,100 15,300 12,800 7,100 *First year of operations. The company has a 31 December year-end. The tax rate is 20%. No dividends were declared until 20X7; $10,300 of dividends were declared and paid in December 20X7. Income for 20X7, calculated using the new accounting policy, was $54,100. Required: Assuming that the change in policy was implemented retrospectively, present the retained earnings reconciliation that would appear in Hannam's 20X7 statement of changes in equity. (Negative amounts should be indicated by a minus sign.) Hannam Company Statement of Changes in Shareholder's Equity Retained Earnings Section Year Ended 31 December 20X7 Retained earnings, 1…
I'm having difficulty with this question, by getting the rest of the values from the given prices, as well as understanding where to place some of the prices.
71. Subject :- Accounting
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On December 31, Strike Company sold one of its batting cages for $22,244. The equipment had an initial cost of $247,161 and had accumulated depreciation of $222,445. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction? a.Loss of $200,201 b.Gain of $224,917 c.Loss of $2,472 d.Gain of $2,472
On December 31, Strike Company sold one of its batting cages for $12,489. The equipment had an initial cost of $427,900 and has accumulated depreciation of $406,505. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction? a.Loss of $12,489 b.Loss of $8,906 c.Gain of $8,906 d.Gain of $12,489
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