The following three accounts appear in the general ledger of Carla Vista Corp. during 2025.Jan 1 BalJuly 31 Purchase of equipmentSept. 2 Purchase of equipmentBalJan 1 Bal.Nov. 10 Accumulated depreciationon equipment soldBalJan. 1 BalAug 23 Dividends (cash)BalEquipment216,000 Nov. 10 Cost of equipment sold94,50071.550315,900Accumulated Depreciation-Equipment220.050Adjustments to reconcile net income to95,850 Dec 31 Depreciation for year21,600Retained Earnings141.750 Dec. 31 Net income18,900112.050CARLA VISTA CORP.Statement of Cash Flows (Partial) - Indirect Method97.20066,150From the postings in the accounts, indicate how the information is reported by preparing a partial statement of cash flows using theIndirect method. The loss on disposal of plant assets was $10,800. (Show amounts that decrease cash flow with either a-siang-15,000or in parenthesis e.g. (15,000))37,800PF

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Description: The following three accounts appear in the general ledger of Carla Vista Corp. during 2025.Jan 1 BalJuly 31 Purchase of equipmentSept. 2 Purchase of equipmentBalJan 1 Bal.Nov. 10 Accumulated depreciationon equipment soldBalJan. 1 BalAug 23 Dividends

Cash Flow Statement :— It is one of the financial statements that shows change in cash and cash…

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Accounting

The following three accounts appear in the general ledger of Carla Vista Corp. during 2025. Jan 1 Bal July 31 Purchase of equipment Sept. 2 Purchase of equipment Bal Jan, 1 Bal. Nov. 10 Accumulated depreciation on equipment sold Bal Jan. 1 Bal Aug 23 Dividends (cash) Bal Equipment 216,000 Nov. 10 Cost of equipment sold 94,500 71.550 315,900 Accumulated Depreciation-Equipment 18,900 220.050 Adjustments to reconcile net income to 95,850 Dec. 31 Depreciation for year 21,000 Retained Earnings 141.750 Dec. 31 Net income 112.050 CARLA VISTA CORP. Statement of Cash Flows (Partial) - Indirect Method 97.200 66.150 From the postings in the accounts, indicate how the information is reported by preparing a partial statement of cash flows using the indirect method. The loss on disposal of plant assets was $10,800. (Show amounts that decrease cash flow with either a-slan eg-15,000 or in parenthesis eg. (15,000)) 37.800 P F

The following three accounts appear in the general ledger of Carla Vista Corp. during 2025. Jan 1 Bal July 31 Purchase of equipment Sept. 2 Purchase of equipment Bal Jan, 1 Bal. Nov. 10 Accumulated depreciation on equipment sold Bal Jan. 1 Bal Aug 23 Dividends (cash) Bal Equipment 216,000 Nov. 10 Cost of equipment sold 94,500 71.550 315,900 Accumulated Depreciation-Equipment 18,900 220.050 Adjustments to reconcile net income to 95,850 Dec. 31 Depreciation for year 21,000 Retained Earnings 141.750 Dec. 31 Net income 112.050 CARLA VISTA CORP. Statement of Cash Flows (Partial) - Indirect Method 97.200 66.150 From the postings in the accounts, indicate how the information is reported by preparing a partial statement of cash flows using the indirect method. The loss on disposal of plant assets was $10,800. (Show amounts that decrease cash flow with either a-slan eg-15,000 or in parenthesis eg. (15,000)) 37.800 P F

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

The following three accounts appear in the general ledger of Carla Vista Corp. during 2025.
Jan 1 Bal
July 31 Purchase of equipment
Sept. 2 Purchase of equipment
Bal
Jan 1 Bal.
Nov. 10 Accumulated depreciation
on equipment sold
Bal
Jan. 1 Bal
Aug 23 Dividends (cash)
Bal
Equipment
216,000 Nov. 10 Cost of equipment sold
94,500
71.550
315,900
Accumulated Depreciation-Equipment
220.050
Adjustments to reconcile net income to
95,850 Dec 31 Depreciation for year
21,600
Retained Earnings
141.750 Dec. 31 Net income
18,900
112.050
CARLA VISTA CORP.
Statement of Cash Flows (Partial) - Indirect Method
97.200
66,150
From the postings in the accounts, indicate how the information is reported by preparing a partial statement of cash flows using the
Indirect method. The loss on disposal of plant assets was $10,800. (Show amounts that decrease cash flow with either a-siang-15,000
or in parenthesis e.g. (15,000))
37,800
P
F

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