he accounts below appear in the ledger of Headland Company. Retained Earnings Dr. Cr. Bal.Jan. 1, 2020 Credit Balance $41,800Aug. 15 Dividends (cash) $14,800 27,000Dec. 31 Net Income for 2020 $40,400 67,400 Equipment Dr. Cr. Bal.Jan. 1, 2020 Debit Balance $141,300Aug. 3 Purchase of Equipment $61,900 203,200Sept. 10 Cost of Equipment Constructed 47,500 250,700Nov. 15 Equipment Sold $55,800 194,900 Accumulated Depreciation—Equipment Dr. Cr. Bal.Jan. 1, 2020 Credit Balance $83,400Apr. 8 Major Repairs $21,200 62,200Nov. 15 Accum. Depreciation on Equipment Sold 25,100 37,100Dec. 31 Depreciation for 2020 $16,600 53,700Prepare entries in journal form for all adjustments that should be made on a worksheet for a statement of cash flows. The loss on sale of equipment (November 15) was $5,900.

SOLUTION- JOURNAL ENTRY IS THE ACT OF KEEPING OR MAKING RECORDS OF ANY TRANSACTIONS EITHER ECONOMIC OR NON ECONOMIC .JOURNAL ENTRIES- S.NO PARTICULARS DEBIT CREDIT 1 RETAINED EARNING---------------DR 14800 TO FINANCING -CASH DIVIDENDS 14800 2 OPERATING -NET INCOME -------------------DR 40400 TO RETAINED EARNINGS 40400 3 OPERATING-DEPRECIATION EXPENSE-------------DR 16600 TO ACCUMULATED DEPRECIATION -EQUIPMENT 16600 4 EQUIPMENT----------------------DR 109400 TO INVESTING -PURCHASE OF EQUIPMENT 61900 TO INVESTING-CONSTRUCTION OF EQUIPMENT 47500 5 ACCUMULATED DEPRECIATION-EQUIPMENT --------------DR 21200 TO INVESTING EXTRAORDINARY REPAIRS TO EQUIPMENT 21200 6 OPERATING-LOSS ON SALE OF EQUIPMENT ---------DR 5900 ACCUMULATED DEPRECIATION-EQUIPMENT ---------DR 25100 INVESTING SALE OF EQUIPMENT -------------------DR 24800 TO EQUIPMENT 55800

Answered: he accounts below appear in the ledger…

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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he accounts below appear in the ledger of Headland Company.

	Retained Earnings	Dr.	Cr.	Bal.
Jan. 1, 2020	Credit Balance			$41,800
Aug. 15	Dividends (cash)	$14,800		27,000
Dec. 31	Net Income for 2020		$40,400	67,400

	Equipment	Dr.	Cr.	Bal.
Jan. 1, 2020	Debit Balance			$141,300
Aug. 3	Purchase of Equipment	$61,900		203,200
Sept. 10	Cost of Equipment Constructed	47,500		250,700
Nov. 15	Equipment Sold		$55,800	194,900

	Accumulated Depreciation—Equipment	Dr.	Cr.	Bal.
Jan. 1, 2020	Credit Balance			$83,400
Apr. 8	Major Repairs	$21,200		62,200
Nov. 15	Accum. Depreciation on Equipment Sold	25,100		37,100
Dec. 31	Depreciation for 2020		$16,600	53,700

Prepare entries in journal form for all adjustments that should be made on a worksheet for a statement of cash flows. The loss on sale of equipment (November 15) was $5,900.

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