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Requirement 1 Compute the amount of Trainer Exercise's acquisition of plant assets. Trainer Exercise disposed of plant assets at book value. The accumulated depreciation of the disposed asset was $40,500 No cash was received upon disposal.

Requirement 1 Compute the amount of Trainer Exercise's acquisition of plant assets. Trainer Exercise disposed of plant assets at book value. The accumulated depreciation of the disposed asset was $40,500 No cash was received upon disposal.

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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**Title: Analyzing Financial Transactions of Trainer Exercise Equipment, Inc. for 2018** Trainer Exercise Equipment, Inc. provided its financial statements for the year 2018. These documents include an income statement and a comparative balance sheet, accessible by clicking the respective icons. **Key Task: Analyzing Asset Transactions** **Requirement 1: Calculation of Plant Asset Acquisitions** We are tasked with determining the value of plant assets acquired by Trainer Exercise Equipment. Notably, the company disposed of some plant assets at their book value during the year. The cost of these assets, along with their accumulated depreciation, was stated at $40,500. Importantly, no cash was received from this disposal. **Instructions:** Input the calculated value of acquired plant assets in the provided field. This exercise directs students to engage with financial accounting concepts, emphasizing asset management and reporting.
Transcribed Image Text:**Title: Analyzing Financial Transactions of Trainer Exercise Equipment, Inc. for 2018** Trainer Exercise Equipment, Inc. provided its financial statements for the year 2018. These documents include an income statement and a comparative balance sheet, accessible by clicking the respective icons. **Key Task: Analyzing Asset Transactions** **Requirement 1: Calculation of Plant Asset Acquisitions** We are tasked with determining the value of plant assets acquired by Trainer Exercise Equipment. Notably, the company disposed of some plant assets at their book value during the year. The cost of these assets, along with their accumulated depreciation, was stated at $40,500. Importantly, no cash was received from this disposal. **Instructions:** Input the calculated value of acquired plant assets in the provided field. This exercise directs students to engage with financial accounting concepts, emphasizing asset management and reporting.
### Trainer Exercise Equipment, Inc. #### Comparative Balance Sheet As of December 31, 2018, and 2017 **Assets** - **Current Assets:** - Cash: - 2018: $18,000 - 2017: $17,000 - Accounts Receivable: - 2018: $51,000 - 2017: $47,000 - Merchandise Inventory: - 2018: $83,000 - 2017: $91,000 - **Long-term Assets:** - Plant Assets: - 2018: $265,100 - 2017: $221,600 - Accumulated Depreciation—Plant Assets: - 2018: $(40,100) - 2017: $(33,600) - Investments: - 2018: $90,000 - 2017: $74,000 - **Total Assets**: - 2018: $467,000 - 2017: $417,000 **Liabilities** - **Current Liabilities:** - Accounts Payable: - 2018: $79,000 - 2017: $72,000 - Salaries Payable: - 2018: $4,000 - 2017: $5,500 - **Long-term Liabilities:** - Notes Payable: - 2018: $62,000 - 2017: $72,000 - **Total Liabilities**: - 2018: $145,000 - 2017: $149,500 - **Stockholders' Equity** - Common Stock, no par: - 2018: $42,000 --- #### Income Statement Year Ended December 31, 2018 - **Net Sales Revenue**: $710,000 - **Cost of Goods Sold**: $349,000 - **Gross Profit**: $361,000 **Operating Expenses:** - Depreciation Expense: $47,000 - Other Operating Expenses: $205,000 - **Total Operating Expenses**: $252,000
Transcribed Image Text:### Trainer Exercise Equipment, Inc. #### Comparative Balance Sheet As of December 31, 2018, and 2017 **Assets** - **Current Assets:** - Cash: - 2018: $18,000 - 2017: $17,000 - Accounts Receivable: - 2018: $51,000 - 2017: $47,000 - Merchandise Inventory: - 2018: $83,000 - 2017: $91,000 - **Long-term Assets:** - Plant Assets: - 2018: $265,100 - 2017: $221,600 - Accumulated Depreciation—Plant Assets: - 2018: $(40,100) - 2017: $(33,600) - Investments: - 2018: $90,000 - 2017: $74,000 - **Total Assets**: - 2018: $467,000 - 2017: $417,000 **Liabilities** - **Current Liabilities:** - Accounts Payable: - 2018: $79,000 - 2017: $72,000 - Salaries Payable: - 2018: $4,000 - 2017: $5,500 - **Long-term Liabilities:** - Notes Payable: - 2018: $62,000 - 2017: $72,000 - **Total Liabilities**: - 2018: $145,000 - 2017: $149,500 - **Stockholders' Equity** - Common Stock, no par: - 2018: $42,000 --- #### Income Statement Year Ended December 31, 2018 - **Net Sales Revenue**: $710,000 - **Cost of Goods Sold**: $349,000 - **Gross Profit**: $361,000 **Operating Expenses:** - Depreciation Expense: $47,000 - Other Operating Expenses: $205,000 - **Total Operating Expenses**: $252,000
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