Chapter 12, Problem 5QS

To determine

Accumulated Depreciation:

Accumulated depreciation is the total depreciation of the noncurrent assets to the depreciation expense. Accumulated depreciation is the assets account with credit balance. It is shown in the balance sheet of the company. Accumulated depreciation increases over the period of time. Accumulated depreciation cannot be charged more than asset cost. It is also known as contra assets account.

Equipment:

Equipment is the noncurrent asset used in the provision of service or production of goods in the business. It is recorded in the balance sheet under the head property, plant and equipment.

1.

To compute: Cash received from sale of equipment.

To determine

2.

To compute: Depreciation expenses on equipment during 2017

To determine

3.

To compute: Cost of new equipment purchased during 2017.