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New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $610,000. The ovens originally cost $811,000, had an estimated service life of 10 years, had an estimated residual value of $51,000, 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. Cash Equipment Assets ✓ ✓ 610,000 (811,000) Balance Sheet Liabilities Accumulated Depreciation x (152,000) X X Answer is not complete. Stockholders' Equity Common Stock Retained Earnings (49,000) Revenues Incom

New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $610,000. The ovens originally cost $811,000, had an estimated service life of 10 years, had an estimated residual value of $51,000, 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. Cash Equipment Assets ✓ ✓ 610,000 (811,000) Balance Sheet Liabilities Accumulated Depreciation x (152,000) X X Answer is not complete. Stockholders' Equity Common Stock Retained Earnings (49,000) Revenues Incom

FINANCIAL ACCOUNTING
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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New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $610,000. The ovens originally cost $811,000, had an estimated service life of 10 years, had an estimated residual value of $51,000, 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. Cash Equipment Assets ✓ ✓ 610,000 (811,000) Balance Sheet Liabilities Accumulated Depreciation x (152,000) X X Answer is not complete. Stockholders' Equity Common Stock Retained Earnings (49,000) Revenues Incom
Transcribed Image Text:New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $610,000. The ovens originally cost $811,000, had an estimated service life of 10 years, had an estimated residual value of $51,000, 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. Cash Equipment Assets ✓ ✓ 610,000 (811,000) Balance Sheet Liabilities Accumulated Depreciation x (152,000) X X Answer is not complete. Stockholders' Equity Common Stock Retained Earnings (49,000) Revenues Incom
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