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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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