Question

An analysis of the general ledger accounts indicates that equipment, with an original cost of $200,000...

An analysis of the general ledger accounts indicates that equipment, with an original cost of $200,000 and accumulated depreciation of $170,000 on the date of sale, was sold for $20,000 during the year. Using this information, indicate the items to be reported on the statement of cash flows using the indirect method.

Cash flows from operating activities:
$
Cash flows from investing activities:
$
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans:

Items included in cash flows statement using the indirect method.

Cash flows from operating activities:

Add: Loss on Sale of Equipment

$10,000

Cash flows from investing activities:

Cash Flow from Sale of equipment

$20,000

Note:

Book Value on the date of Sale = Original Cost - Accumulated Depreciation


Book Value on the date of Sale = $200,000 - $170,000 = $30,000

Sale Value of equipment = $20,000

Loss on sale of equipment = $10,000

(As book value of the equipment sold is more than the price at which it is sold, there is a loss of $10,000)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Reporting changes in Equipment on Statement of Cash Flows An analysis of the general ledger accounts...
Reporting changes in Equipment on Statement of Cash Flows An analysis of the general ledger accounts indicates that delivery equipment, which cost $80,000 and on which accumulated depreciation totaled $36,000 on the date of sale, was sold for $37,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows. Transaction Section of Statement of Cash Flows Added or Deducted $80,000 cost of office equipment $36,000 accumulated depreciation $37,200 sales price $6,800 loss...
The following three accounts appear in the general ledger of Marin Inc. during 2022. Equipment Date...
The following three accounts appear in the general ledger of Marin Inc. during 2022. Equipment Date Debit Credit Balance Jan. 1 Balance 200,000 July 31 Purchase of equipment 87,500 287,500 Sept. 2 Cost of equipment constructed 66,250 353,750 Nov. 10 Cost of equipment sold 61,250 292,500 Accumulated Depreciation—Equipment Date Debit Credit Balance Jan. 1 Balance 88,750 Nov. 10 Accumulated depreciation on equipment sold 20,000 68,750 Dec. 31 Depreciation for year 35,000 103,750 Retained Earnings Date Debit Credit Balance Jan. 1...
The three accounts shown below appear in the general ledger of Cullumber Corp. during 2021. Equipment...
The three accounts shown below appear in the general ledger of Cullumber Corp. during 2021. Equipment Date Debit Credit Balance Jan. 1 Balance 163,200 July 31 Purchase of equipment 71,400 234,600 Nov. 10 Cost of equipment sold 50,000 184,600 Accumulated Depreciation—Equipment Date Debit Credit Balance Jan. 1 Balance 72,400 Nov. 10 Accumulated depreciation on equipment sold 30,600 41,800 Dec. 31 Depreciation for year 28,600 70,400 Retained Earnings Date Debit Credit Balance Jan. 1 Balance 107,100 Aug. 23 Dividends (cash) 14,300...
An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts...
An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. Indicate where each item should be presented in the statement of cash flows (indirect method) using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the...
Flynn Co. reported sales of $250,000. If accounts receivable decreased $10,000 during the year: Sales is...
Flynn Co. reported sales of $250,000. If accounts receivable decreased $10,000 during the year: Sales is greater than cash collected Cash collected is greater than sales Cash collected is the same as sales None of the above Refer to the previous question. The amount of cash collected is: Use the following to determine the cash flows provided by or used in investing activities: Net income is $145,000, including a gain on the sale of building of $25,000. The equipment cost...
Kennedy, Inc. reported the following data: Net income$184,581 Depreciation expense16,601 Loss on disposal of equipment(9,387) Gain...
Kennedy, Inc. reported the following data: Net income$184,581 Depreciation expense16,601 Loss on disposal of equipment(9,387) Gain on sale of building19,680 Increase in accounts receivable10,437 Decrease in accounts payable(2,265) Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, cash payments, or any negative adjustments. Kennedy, Inc. Statement of Cash Flow Cash flows from operating activities: Net income $ Adjustments to...
The following items were gathered from Oriole Industries’ general ledger: Sale of marketable securities $ 14,310...
The following items were gathered from Oriole Industries’ general ledger: Sale of marketable securities $ 14,310 Depreciation and amortization expense 24,272 Payment of cash dividends 3,333 Proceeds from disposal of equipment 889 Loss on disposal of equipment 230 Net income 25,643 Beginning Cash balance 19,980 Purchase of equipment 21,832 Decrease in Accounts Receivable 1,548 Proceeds from issuing common stock 2,311 Increase in Inventory 3,585 Increase in Accounts Payable 4,700 Ending Cash balance 65,133 Using the indirect method, construct Oriole Industries’...
During the period, Sanchez Company sold some excess equipment at a loss. The following information was...
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company’s accounting records From the Income Statement Depreciation expense $ 830 Loss on sale of equipment 3,500 From the Balance Sheet Beginning equipment 19,900 Ending equipment 11,400 Beginning accumulated depreciation 1,860 Ending accumulated depreciation 1,760 No new equipment was bought during the period. Required:   1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash...
vDuring 2021 equipment was sold for $74,000. This equipment cost $112,000 and had a book value...
vDuring 2021 equipment was sold for $74,000. This equipment cost $112,000 and had a book value of $69,700. Accumulated depreciation for equipment was $323,300 at 12/31/20 and $306,200 at 12/31/21. Complete the cash flow statement below: (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Partial Statement of Cash Flows (Indirect Method)                                                          ...
The following selected account balances relate to the property, plant, and equipment accounts of Blossom Inc.:...
The following selected account balances relate to the property, plant, and equipment accounts of Blossom Inc.: 2018 2017 Accumulated depreciation—buildings $335,000 $300,000 Accumulated depreciation—equipment 144,000 95,000 Depreciation expense—buildings 35,000 35,000 Depreciation expense—equipment 60,000 49,000 Land 100,000 60,000 Buildings 700,000 700,000 Equipment 300,000 240,000 Gain on disposal (equipment) 4,000 0 Additional information: 1. Purchased $40,000 of land for cash. 2. Purchased $75,000 of equipment for a $10,000 down payment, financing the remainder with a bank loan. Equipment was also sold during...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT