The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Sheffield Company at the end of 2022 are shown here. Equipment Beg, bal, 79,800 Disposals 23,700 Acquisitions 37,400 End bal 93,500 Accumulated Depreciation-Equipment Disposals 5,200 Beg bal 44,500 Depr. exp 12.200 End. bal 51.500 In addition, Sheffield's income statement reported a loss on the disposal of plant assets of $4,000. What amount was reported on the statement of cash flows as "cash flow from sale of equipment"? (Show amount that decrease cash flow with either a-sign eg-15,000 or in parenthesis eg. (15,0001) Cash flow from sale of equipment

The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Sheffield Company at the end of 2022 are shown here. Equipment Beg, bal, 79,800 Disposals 23,700 Acquisitions 37,400 End bal 93,500 Accumulated Depreciation-Equipment Disposals 5,200 Beg bal 44,500 Depr. exp 12.200 End. bal 51.500 In addition, Sheffield's income statement reported a loss on the disposal of plant assets of $4,000. What amount was reported on the statement of cash flows as "cash flow from sale of equipment"? (Show amount that decrease cash flow with either a-sign eg-15,000 or in parenthesis eg. (15,0001) Cash flow from sale of equipment

Name: The T-accounts for Equipment and the related Accumulated Depreciation
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Sheffield Company at the end of 2022 areshown here.EquipmentBeg. bal.79,800 Disposals 23,700Acquisitions 37,400End. bal.93,500Accumulated Depreciation-EquipmentDispo

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In the 30 June 2020 annual report of Laverton ltd, the following information was reported for…

A: Journal entry:The monetary transaction of the business is recorded in the books of accounts called…

Q: Calculate any cash receipts or payments related to the property, plant, and equipment accounts in…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization…

A: 1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2021.

Q: Concord Company is in the process of preparing its financial statements for 2025. Assume that no…

A: Solution for Asset 1- Given,Cost of Equipment (January 2,2022) = $86,600Useful life= 10 YearsSalvage…

Q: Sheffield Cole Inc. acquired the following assets in January of 2023. Equipment, estimated useful…

A: Depreciation is defined as the fall in the value of fixed assets due it their uses and time spent on…

Q: A partial statement of financial position of Ivanhoe Ltd. on December 31, 2022, showed the following…

A: Revaluation is the process of adjusting the carrying value of business assets with respect to their…

Q: Pell Corporation’s Property, Plant, and Equipment and Accumulated Depreciation accounts had the…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: Assets: Any things or property owned by business called Assets. Assets can be Tangible and…

Q: Information related to plant assets, natural resources, and intangibles at the end of 2022 for Novak…

A: Balance sheet is the financial statement prepared by the entity for the purpose of determining its…

Q: 1. Wilkinson Company changed depreciation methods in 2023 from doubledeclining-balance to…

A: Under International Financial Reporting Standards (IFRS), a change in depreciation method is…

Q: On January 1, 2022, Cullumber Corporation acquired machinery for $1720000. Cullumber adopted the…

A: Depreciation is crucial for financial reporting since it aids in determining taxable income for tax…

Q: A company sells a plant asset that originally cost $588000 for $169000 on December 31, 2022. The…

A: Gain or loss on disposal = Selling price - (original cost - accumulated depreciation)Given:Selling…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: CHANGES IN PLANT ASSETS Plant assets, like all assets, are reported on your balance sheet, where…

Q: The information that follows relates to equipment owned by Pearl Limited at December 31, 2023: Cost…

A: The carrying amount of an asset is its cost minus any accumulated depreciation. In this case, the…

Q: December 2022 Fraser Ltd's statement of financial positi motor vehicles at a cost price of $400 000…

A: Introduction:- An asset is impaired when its carrying amount exceeds its recoverable amount. The…

Q: At December 31, 2022, Ayayai Corporation reported the following plant assets. Land $…

A: Record journal entries for the transactions as shown below:

Q: Providence Corporation purchased machinery on March 24th, 2022. Assume this machinery was the…

A: ANSWER:-YEAR 2020YEAR 2021A.straight line (semi annually)300,000 - 60,000 / 10 years = 24,000 annual…

Q: Information related to plant assets, natural resources, and intangible assets at the end of 2022 for…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: piece of equipment was bought on 2nd January 2015 for $ 90,000, The Company depreciates its PP&E at…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: On January 1, 2022, Sheridan Corporation acquired equipment at a cost of $777000. Sheridan adopted…

A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…

Q: Dell Farms Ltd. sold equipment during 2022 that had originally been purchased for $ 252,000. The…

A: Introduction:Depreciation Expense:Depreciation expense is the amount of cost that is recognized as…

Q: Pharoah Company changed depreciation methods in 2025 from double-declining-balance to straight-line.…

A: The Depreciation is a non-cash expense that allows companies to make provisions for the replacement…

Q: Togo’s Sandwich Shop had the following long-term asset balances as of January 1, 2021:…

A: Date Particulars Debit CreditDec31…

Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…

A: Depreciation refers to persistent and gradual decline in the fixed asset book value. There are…

Q: First, calculate any gain or loss on the disposal of the equipment Market value of assets received…

A: The journal entries are prepared in the book by debiting one or more accounts and crediting one or…

Q: Oriole Company changed depreciation methods in 2025 from double-declining-balance to straight-line.…

A: Depreciation helps a company to allocate the capital cost of an asset over its useful life.…

Q: The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at…

A: Formula to calculate cash flow from sale of equipment:

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.

Topic Video

Question

The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Sheffield Company at the end of 2022 are
shown here.
Equipment
Beg. bal.
79,800 Disposals 23,700
Acquisitions 37,400
End. bal.
93,500
Accumulated Depreciation-Equipment
Disposals
5,200 Beg, bal
44,500
Depr. exp.
12.200
End, bal
51.500
In addition, Sheffield's income statement reported a loss on the disposal of plant assets of $4,000. What amount was reported on the
statement of cash flows as "cash flow from sale of equipment"? (Show amount that decrease cash flow with either a-sign eg-15,000 or in
parenthesis eg. (15,000))
Cash flow from sale of equipment S

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Presented below is information related to equipment owned by Bramble Company at December 31, 2025. Cost Accumulated depreciation to date. Expected future net cash flows Fair value $10,260,000 (a) 1.140,000 7,980,000 5,472,000 Assume that Bramble will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (If no entry is required, select "No entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) ternunt Titles and Fynlanation Debit Credit SUPPORT
sa
Presented below is information related to equipment owned by Novak Company at December 31, 2025. Cost $6,820,000 Accumulated depreciation to date 670,000 Expected future net cash flows 4,730,000 Fair value 3,430,000 Assume that Novak will continue to use this asset in the future. As of December 31, 2025, the equipment has a remaining useful life of 4 years and no salvage value. (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Date December 31, 2025 Account Titles and Explanation Debit Credit I
I need to know how to calculate the gain on the equipment sold in part C The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125 Required: If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine: What the original cost of the equipment was. What depreciation method is apparently being used. When the equipment was acquired. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal…
The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2023: Plant Asset Accumulated Depreciation $ 480,000 245,000 2,150,000 1,184,000 215,000 Land Land improvements Building Equipment Automobiles Transactions during 2024 were as follows: a. On January 2, 2024, equipment was purchased at a total invoice cost of $325,000, which included a $6,800 charge for freight Installation costs of $40,000 were incurred in addition to the invoice cost. b. On March 31, 2024, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $32,000. The fair value of the building on the day of the donation was $21,000. c. On May 1, 2024, expenditures of $63,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On…
Presented below is information related to Wolfie Corp.’s equipment on 12/31/2022: Description Amount Capitalized cost $900,000 Accumulated depreciation to date 750,000 Estimated residual value 40,000 Expected future cash flows 125,000 Estimated Fair value 100,000 The amount of the impairment loss, if any, that Wolfie Corp. should record on 12/31/22 is: $45,000 $50,000 $10,000 $20,000 $25,000 There is no impairment.
The balance sheets of HIROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $273,375 $334,125 Required: a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? b. Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HİROE Inc., is eight years and that there is no estimated salvage value. Determine: 1. What the original cost of the equipment was. 2. What depreciation method is apparently being used. 3. When the equipment was acquired. c. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal entry for the sale of the machine to calculate the gain or loss on the sale of one…
n The T-accounts for Equipment and the related Accumulated Depreciation-Equipment for Oriole Company at the end of 2022 are shown here. Equipment Beg. bal. 75,600 Disposals 21,800 Acquisitions 45,500 End. bal. 99,300 Accumulated Depreciation-Equipment Disposals 5,000 Beg. bal. 44,700 Depr. exp. 11,500 End. bal. 51,200 In addition, Oriole Company's income statement reported a loss on the disposal of plant assets of $4,000. What amount was reported on the statement of cash flows as "cash flow from sale of equipment"? (Show an amount that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment eTextbook and Media $
71. Subject :- Accounting
Hardev l gadubhai
At December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May June Date 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. April 1 $26,520,000 11,934,000 60,640,000 7,580,000 May 1 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated…
On 1/1/19, O. Corp acquired equipment at a cost of $867k. O. Corp adopted the sum-of-the-yrs-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of 8 yrs, with no residual value. At the beginning of 2022, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2022 would be $173400 $72250 $45156 $108375