Stark Industries reported a net income of $52,000 for the year ended December 31, 2023. Included in net income were depreciation expenses of $10,500 and a gain on the sale of equipment of $2,300. The equipment had a historical cost of $48,000 and accumulated depreciation of $30,000. Each of the following accounts increased during 2023: • Patents: $6,200 • Prepaid Rent: $7,000 . Available-for-sale securities: $1,500 • Bonds Payable: $5,500 What is the amount of cash provided by or used in investing activities for Stark Industries for the year ended December 31, 2023?

Stark Industries reported a net income of $52,000 for the year ended December 31, 2023. Included in net income were depreciation expenses of $10,500 and a gain on the sale of equipment of $2,300. The equipment had a historical cost of $48,000 and accumulated depreciation of $30,000. Each of the following accounts increased during 2023: • Patents: $6,200 • Prepaid Rent: $7,000 . Available-for-sale securities: $1,500 • Bonds Payable: $5,500 What is the amount of cash provided by or used in investing activities for Stark Industries for the year ended December 31, 2023?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 13P: Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended...

See similar textbooks

Similar questions

Depreciation expense is 2.4% of the gross beginning balance of property, plant and equipment (PPE). As of December 31, 2021, the gross balance of PPE is P3,980,000. For January 2022, P500,000 new PPE will be acquired. It is the policy of the company that PPE acquired in the first half of the year will be depreciated for one full year. (Assume that PPE, net at the end of 2021 is #3,123,090.) How much is the PPE, net and Accumulated Depreciation - PPE on December 31, 2022? P3,875,670.00; P684,350.00 P3,675,870.00; P864,530.00 P3,575,670.00; P984,550.00 P3,515,570.00; P964,430.00
General Accounting
Baldwin, Inc. had net sales of $52,200,000 for the year ended May 31, 2024. Its beginning and ending total assets were $55,200,000 and $88,800,000, respectively. Determine Baldwin's asset turnover ratio for year ended May 31, 2024. (Round the asset turnover ratio to two decimal places, X.XX.) Asset turnover ratio C
On January 1, 2021, Concord Corporation purchased equipment for $20000. The company is depreciating the equipment at the rate of $800 per month. At January 31, 2022, the balance in Accumulated Depreciation is: $800 debit. $10400 credit. $49600 debit. $9600 credit.
On January 1, 2021, Cheyenne Corp. purchased equipment for $22000. The company is depreciating the equipment at the rate of $880 per month. At January 31, 2022, the balance in Accumulated Depreciation is: $11440 credit. $880 debit. $54560 debit. $10560 credit.
Sunland Corporation owns machinery that cost $25,200 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,024 per year, resulting in a balance in accumulated depreciation of $10,584 at December 31, 2025. The machinery is sold on September 1, 2026, for $13,230. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale.
Sunland Corp. purchased machinery for $313,950 on May 1, 2025. It is estimated that it will have a useful life of 10 years, salvage value of $16,950, production of 237,600 units, and working hours of 25,000. During 2026, Sunland Corp. uses the machinery for 2,650 hours, and the machinery produces 28,800 units. From the information given, compute the depreciation charge for 2026 under each of the following methods. (Round intermediate calculations to 2 decimal places, e.g. 5.25 and final answers to O decimal places, e.g. 45,892.) (a) Straight-line (b) Units-of-output (c) Working hours (d) Sum-of-the-years'-digits (e) Declining-balance (use 20% as the annual rate) $ LA $ LA $ LA $ $ LA 29700 36000 31482 21240 241336
Vaughn Company purchased equipment for $201,700 on October 1, 2025. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $14,000. Estimated production is 32,000 units and estimated working hours are 20,000. During 2025, Vaughn uses the equipment for 550 hours and the equipment produces 1,000 units. Compute depreciation expense under each of the following methods. Vaughn is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to O decimal places, e.g. 45,892.) (a) (b) (d) Straight-line method for 2025 (c) Activity method (working hours) for 2025 (e) Activity method (units of output) for 2025 Sum-of-the-years'-digits method for 2027 Double-declining-balance method for 2026 $ $ $ $
On December 31, 2022, Tamarisk Inc. owns a machine with a carrying amount of $744, 000. The original cost and accumulated depreciation for the machine on this date are as follows: Machine S 1,320, 000 Accumulated depreciation 576, 000 S744, 000 Depreciation is calculated at $96, 000 per year on a straight - line basis. A set of independent situations follows. For each situation, prepare the journal entry for Tamarisk to record the transaction. Ensure that depreciation entries are recorded to update the machine's carrying amount before its disposal. Assume that Tamarisk uses IFRS for financial statement purposes. (a) A fire completely destroyed the machine on August 31, 2023. An Insurance settlement of $428,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.…
On April 1, 2017, Mills Company acquired equipment for $125,000. The estimated useful life is six years, and the estimated residual value is $5,000. Mills estimates that the equipment can produce 25,000 unts of product. During 2017 and 2018, respectively, 3,000 units and 4,200 units were produced. Mills reports on a calendar year basis. Required: Calculate depreciation expense for 2017 and 2018 under each of the following methods (ssume that Mills calculates depreciation to the nearest month in the year of acquisition): 1. Straight-line method. 2. Production method (units of output).
s
Vaughn Corporation owns machinery that cost $26,000 when purchased on July 1, 2021. Depreciation has been recorded at a rate of $3,120 per year, resulting in a balance in accumulated depreciation of $10,920 at December 31, 2025. The machinery is sold on September 1, 2026, for $6,760. Prepare journal entries to (a) update depreciation for 2026 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (a) (b) Debit Credit