Equipment acquired on January 9, 20Y3, at a cost of $633,000, has an estimated useful life of 16 years, an estimated residual value of $113,940, and is depreciated by the straight-line method. a.  What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar. $ For decreases in accounts or outflows of cash, enter your answers as negative numbers. Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. b1.  Assuming that the equipment was sold on July 1, 20Y8, for $189,900, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date. b2.  Assuming that the equipment was sold on July 1, 20Y8, for $189,900, illustrate the effects on the accounts and financial statement of the sale of the equipment.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Equipment acquired on January 9, 20Y3, at a cost of $633,000, has an estimated useful life of 16 years, an estimated residual value of $113,940, and is depreciated by the straight-line method.

a.  What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar.
$

For decreases in accounts or outflows of cash, enter your answers as negative numbers. Round annual depreciation to the nearest dollar and use this amount in your follow-on calculations. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank.

b1.  Assuming that the equipment was sold on July 1, 20Y8, for $189,900, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date.

b2.  Assuming that the equipment was sold on July 1, 20Y8, for $189,900, illustrate the effects on the accounts and financial statement of the sale of the equipment.

Balance Sheet
Statement of Cash
Income
Assets
Liabilities
Stockholders' Equity
Flows
Statement
July 1.
Statement of Cash Flows
Income Statement
Transcribed Image Text:Balance Sheet Statement of Cash Income Assets Liabilities Stockholders' Equity Flows Statement July 1. Statement of Cash Flows Income Statement
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