Question

MC Qu. 142 Use the following information...

Use the following information to calculate cash received from dividends:

Dividends revenue	$	66,500
Dividends receivable, January 1		4,500
Dividends receivable, December 31		3,700

Multiple Choice

$62,800.

$66,500.

$67,300.

$71,000.

$65,700.

MC Qu. 163 Jeffreys Company reports...

Jeffreys Company reports depreciation expense of $50,000 for Year 2. Also, equipment costing $170,000 was sold for a $11,000 loss in Year 2. The following selected information is available for Jeffreys Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

At December 31	Year 2			Year 1
Equipment	$	660,000		$	830,000
Accumulated Depreciation-Equipment		468,000			550,000

Multiple Choice

$38,000.

$27,000.

$71,000.

$50,000.

$49,000.

Answer 1

Solution:

(1) : MC Qu - 142 :

Computation of cash received from dividends -

Cash received from dividends = Divend Revenue + Opening dividend Receivable - Closing Dividend Receivable

= $(66,500 + 4,500 - 3,700)

= $71,000-3,700

= $ 67,300

Therefore Cash Received From Dividends = $67,300

Hence,Option (C) is Correct From the Given Options .

(2) : MC Qu -163 :

Computation Of cash received from the sale of the equipment

= Cost of Equipment - Accumulated depreciation for Equipment sold(Wn:1) - Loss on Sale of Equipment

= $ (1,70,000 - 1,32,000 - 11,000)

= $ 27,000

Therefore , Cash Received from Sale of Equipment = $27,000

Hence , Option (b) is Correct from the given questions .

Working note :

Computation of Accumulated depreciation forSale of Equipment -