The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net $ 180,000 (100, 000) $ 80,000 $ 380,000 (100, 000) $ 280,000 Cash received from the sale of equipment Depreciation expense Purchase of equipment 2020 $ 270,000 (210,000) $ 60,000 $ 400,000 (285,000) $ 115,000 uring 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3 How much cash did Anders receive from the sale of equipment? How much depreciation expense was recorded on equipment during 2021? What was the cost of new equipment purchased by Anders during 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The plant assets section of the comparative balance sheets of Anders Company is reported below.
ANDERS COMPANY
Comparative Year-End Balance Sheets
2021
Plant assets
Equipment
Accumulated depreciation-Equipment
Equipment, net
Buildings
Accumulated depreciation-Buildings
Buildings, net
$ 180,000
(100, 000)
$ 80,000
$ 380,000
(100, 000)
$ 280,000
1. Cash received from the sale of equipment
2. Depreciation expense
3. Purchase of equipment
2020
$ 270,000
(210,000)
$ 60,000
$ 400,000
(285,000)
$ 115,000
During 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000.
1. How much cash did Anders receive from the sale of equipment?
2. How much depreciation expense was recorded on equipment during 2021?
3. What was the cost of new equipment purchased by Anders during 2021?
Transcribed Image Text:The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net $ 180,000 (100, 000) $ 80,000 $ 380,000 (100, 000) $ 280,000 1. Cash received from the sale of equipment 2. Depreciation expense 3. Purchase of equipment 2020 $ 270,000 (210,000) $ 60,000 $ 400,000 (285,000) $ 115,000 During 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2021? 3. What was the cost of new equipment purchased by Anders during 2021?
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