New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $510,000. The ovens originally cost $701,000, had an estimated service life of 10 years, had an estimated residual value of $41,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. 4. Determine the financial statement effects of the sale of the ovens at the end of the second year. Note: Amounts to be deducted should be indicated by a minus sign. Assets Cash Accumulated Depreciation Balance Sheet 510,000 132,000 Liabilities. 50,800 Stockholders' Equity Common Retained Stock Earnings Loss Revenues Income Statement Expenses 59,000 Depreciation Expense 140,200 Net Income (191,000)
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $510,000. The ovens originally cost $701,000, had an estimated service life of 10 years, had an estimated residual value of $41,000, and were depreciated using straight-line depreciation. Complete the requirements below for New Morning Bakery. 4. Determine the financial statement effects of the sale of the ovens at the end of the second year. Note: Amounts to be deducted should be indicated by a minus sign. Assets Cash Accumulated Depreciation Balance Sheet 510,000 132,000 Liabilities. 50,800 Stockholders' Equity Common Retained Stock Earnings Loss Revenues Income Statement Expenses 59,000 Depreciation Expense 140,200 Net Income (191,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest
Bakery for $510,000. The ovens originally cost $701,000, had an estimated service life of 10 years, had an estimated
residual value of $41,000, and were depreciated using straight-line depreciation. Complete the requirements below for
New Morning Bakery.
4. Determine the financial statement effects of the sale of the ovens at the end of the second year.
Note: Amounts to be deducted should be indicated by a minus sign.
Assets
Accumulated Depreciation
Balance Sheet
510,000
132,000
Liabilities.
50,800
Stockholders' Equity
Common Retained
Stock Earnings
Loss
Revenues
Income Statement
59,000
Expenses
Depreciation
Expense
140,200
Net Income
(191,000)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c693514-eb46-465f-a98b-4729c951c500%2F32de3d7c-4f75-4a8f-ac4e-1d33546a7d5f%2F0xvn9cl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Cash
New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest
Bakery for $510,000. The ovens originally cost $701,000, had an estimated service life of 10 years, had an estimated
residual value of $41,000, and were depreciated using straight-line depreciation. Complete the requirements below for
New Morning Bakery.
4. Determine the financial statement effects of the sale of the ovens at the end of the second year.
Note: Amounts to be deducted should be indicated by a minus sign.
Assets
Accumulated Depreciation
Balance Sheet
510,000
132,000
Liabilities.
50,800
Stockholders' Equity
Common Retained
Stock Earnings
Loss
Revenues
Income Statement
59,000
Expenses
Depreciation
Expense
140,200
Net Income
(191,000)
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