Equipment with a historical cost of $70,000 and Accumulated Depreciation of $15,000 is junked. No cash is received upon disposal. Which journal entry is necessary? a. debit Accumulated Depreciation-Equipment for $15,000 and credit Equipment for $15,000. b. debit Accumulated Depreciation-Equipment for $15,000, debit Gain on Disposal of Equipment for $55,000, and credit Equipment for $70,000. c. debit Accumulated Depreciation-Equipment for $70,000 and credit Equipment for $70,000. d. debit Accumulated Depreciation-Equipment for $15,000, debit Loss on Disposal of Equipment for $55,000, and credit Equipment for $70,000.

Equipment with a historical cost of $70,000 and Accumulated Depreciation of $15,000 is junked. No cash is received upon disposal. Which journal entry is necessary? a. debit Accumulated Depreciation-Equipment for $15,000 and credit Equipment for $15,000. b. debit Accumulated Depreciation-Equipment for $15,000, debit Gain on Disposal of Equipment for $55,000, and credit Equipment for $70,000. c. debit Accumulated Depreciation-Equipment for $70,000 and credit Equipment for $70,000. d. debit Accumulated Depreciation-Equipment for $15,000, debit Loss on Disposal of Equipment for $55,000, and credit Equipment for $70,000.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 8DQ: Fully depreciated equipment costing 50,000 was discarded. What was the effect of the transaction on...

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Equipment acquired at a cost of $126,000 has a book value of $42,000. a. The equipment had no market value and was discarded. b. The equipment is sold for $54,000. c. The equipment is sold for $24,000. Journalize the disposal of the equipment under the assumptions listed above. If an amount box does not require an entry, leave it blank. a. b. Accumulated Depreciation - Equipment Cash Depreciation Expense - Equipment Equipment Gain on Sale of Equipment
Equipment that cost 412000 and on which 191000 of accumulated depreciation has been recorded was disposed of for 181000 cash. The entry to record this event would include a ? Equipment that cost $412000 and on which $191000 of accumulated depreciation has been recorded was disposed of for $181000 cash. The entry to record this event would include a O credit to Accumulated Depreciation for $191000. Ogain of $40000. credit to the Equipment account for $221000. loss of $40000.
T2.
Fully depreciated equipment costing 50,000 was discarded. What was the effect of the transaction on cash flows if (A) 15,000 cash is received for the equipment, and (B) no cash is received for the equipment?
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Asset A B C D E Cost 68,000 93,000 258,000 214,000 Residual Value $ 34,000 13,000 24,000 34,000 Service Life Depreciation (Years) Method 5 8 10 8 DDB SL SL DDB Depreciation (Year 2) $ 39,000 5,900 10,000 23,400
H1.
I need help recording these types of transactions?
Gain or Loss?
Solve this one
A machine with a cost of $176,000 and accumulated depreciation of $108,000 is sold for $58,400 cash. The amount of the loss related to the sale of this machine should be reported in the operating section under the indirect method is: $86,900. $9,600. $14,100. $28,500. $5,840.
A truck costing S72,000 has accumulated depreciation of $48,000. The truck is sold for $8,500. The journal entry to record this transaction is to: O A. debit Cash for $8,500, debit Truck for $72,000, credit Accumulated Depreciation - Truck for $48,000 and credit Gain on Disposal for S32,500. O B. debit Cash for $15,500, debit Truck for $72,000, credit Accumulated Depreciation - Truck for $48,000, and credit Gain on Disposal for $8,500. OC. debit Accumulated Depreciation - Truck for $48,000, and credit Truck for $48,000. O D. debit Cash for $8,500, debit Accumulated Depreciation - Truck for $48,000, debit loss on Disposal for $15,500 , and credit Truck for $72,000.
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