Reporting changes in Equipment on Statement of Cash Flows An analysis of the general ledger accounts indicates that office equipment, which cost $245,000 and on which accumulated depreciation totaled $112,500 on the date of sale, was sold for $105,900 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
Reporting changes in Equipment on Statement of Cash Flows An analysis of the general ledger accounts indicates that office equipment, which cost $245,000 and on which accumulated depreciation totaled $112,500 on the date of sale, was sold for $105,900 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Reporting changes in Equipment on Statement of Cash Flows
An analysis of the general ledger accounts indicates that office equipment, which cost $245,000 and on which
Using this information, indicate the items to be reported on the statement of cash flows.
Transcribed Image Text:Reporting changes in Equipment on Statement of Cash Flows
An analysis of the general ledger accounts indicates that office equipment, which cost $245,000 and on which accumulated depreciation totaled $112,500 on the date of sale, was
sold for $105,900 during the year.
Using this information, indicate the items to be reported on the statement of cash flows.
Transactions
Section of Statement of Cash Flows
$245,000 cost of office equipment
$112,500 accumulated depreciation
$105,900 sales price
$26,600 loss on sale of equipment
(assume the indirect method is used)
Added or Deducted
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