What would be the excel formula for "Cash received from sale of equipment?" I know it is $10,000, but the system will only accept Excel cells (along with +-*/).
What would be the excel formula for "Cash received from sale of equipment?" I know it is $10,000, but the system will only accept Excel cells (along with +-*/).
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Question
What would be the excel formula for "Cash received from sale of equipment?" I know it is $10,000, but the system will only accept Excel cells (along with +-*/).
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The following financial statements and additional information are reported.
At June 30
Assets
Cash
5
6
7
8
9
10
11
12
13
Equipment
14 Accumulated depreciation-Equipment
15
Total assets
16
Liabilities and Equity
17
Accounts payable
18
19
20
21
22
23
24
25
26
27
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
A
Wages payable
Income taxes payable
Total current liabilities
Notes payable (long term)
Total liabilities
IKIBAN INCORPORATED
Comparative Balance Sheets
Equity
Common stock, $5 par value
Retained earnings
Total liabilities and equity
B
2021
$87,500
65,000
63,800
4,400
220,700
124,000
(27,000)
$317,700
$25,000
6,000
3,400
34,400
30,000
64,400
220,000
33,300
$317,700
с
2020
$44,000
51,000
86,500
5,400
186,900
115,000
(9,000)
$292,900
$30,000
15,000
3,800
48,800
60,000
108,800
160,000
24,100
$292,900](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc11d4a57-ac1a-4d7c-9d35-7c9faaeca6f4%2F729bde46-e9ce-4f8b-8293-37a56c642260%2F86vu5i5_processed.png&w=3840&q=75)
Transcribed Image Text:1
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3
4
The following financial statements and additional information are reported.
At June 30
Assets
Cash
5
6
7
8
9
10
11
12
13
Equipment
14 Accumulated depreciation-Equipment
15
Total assets
16
Liabilities and Equity
17
Accounts payable
18
19
20
21
22
23
24
25
26
27
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
A
Wages payable
Income taxes payable
Total current liabilities
Notes payable (long term)
Total liabilities
IKIBAN INCORPORATED
Comparative Balance Sheets
Equity
Common stock, $5 par value
Retained earnings
Total liabilities and equity
B
2021
$87,500
65,000
63,800
4,400
220,700
124,000
(27,000)
$317,700
$25,000
6,000
3,400
34,400
30,000
64,400
220,000
33,300
$317,700
с
2020
$44,000
51,000
86,500
5,400
186,900
115,000
(9,000)
$292,900
$30,000
15,000
3,800
48,800
60,000
108,800
160,000
24,100
$292,900
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43 Additional Information
44
a. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
45 b. The only changes affecting retained earnings are net income and cash dividends paid.
46
47
48
49
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
$678,000
411,000
267,000
67,000
58,600
141,400
2,000
143,400
43,890
$99,510
c. New equipment is acquired for $57,600 cash.
e. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.
f. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
g. All purchases and sales of inventory are on credit.
Notes Payable
Cash paid for Equipment
Equipment cost
$30,000
$57,600
$48,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc11d4a57-ac1a-4d7c-9d35-7c9faaeca6f4%2F729bde46-e9ce-4f8b-8293-37a56c642260%2F8o75dc4_processed.png&w=3840&q=75)
Transcribed Image Text:28
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42
43 Additional Information
44
a. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
45 b. The only changes affecting retained earnings are net income and cash dividends paid.
46
47
48
49
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
$678,000
411,000
267,000
67,000
58,600
141,400
2,000
143,400
43,890
$99,510
c. New equipment is acquired for $57,600 cash.
e. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.
f. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
g. All purchases and sales of inventory are on credit.
Notes Payable
Cash paid for Equipment
Equipment cost
$30,000
$57,600
$48,600
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