A company sells equipment with a book value of $23,000 for $25,000 cash. Required How would the

Question:

A company sells equipment with a book value of $23,000 for $25,000 cash.
Required
How would the sale of equipment be reported on the statement of cash flows under the
a) Indirect method
b) The direct method?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

See More Books

Question Posted: Jul 16, 2015 04:58 AM

See More Questions

A government transfers equipment with a book value of $600,000 from its General Capital Assets accounts to an Enterprise Fund. How is this transaction reported in the Enterprise Fund statement of...
The potential flow domain consist of three elementary flow models, they are namely.... (a) Uniform flow of angle of attack = 8 and free stream velocity U = 20 (b) (c) Doublet of strength = 15 and...
Zobell Corporation sells equipment with a book value of $8,000, receiving a non-interest-bearing note due in three years with a face amount of $10,000. There is no established market value for the...
In Fig. P2.72 gate AB is circular. Find the moment of the hydrostatic force on this gate about axis A. Neglect atmospheric pressure.
MOCK ARBITRATION Following is a situation in which you are to conduct a mock arbitration. The class will be divided into teams, five to six students per team. Each team will then be assigned to...
Indicate the effect that each of the following transactions has on the cash balance. Payment of cash dividends Increase cash Payment of interest Decrease cash Sale of treasury stock No change in cash...
Provide examples of how P&G may work with Kroger to jointly plan and implement a retail strategy using the six Ps.
A business issued a 45-day, 6% note for $80,000 to a creditor on account. Journalize the entries to record (a) The issuance of the note and (b) The payment of the note at maturity, including interest.
On 1/1/22, Lionel, Inc. purchased $50,000 H Companys 8% bonds for $54,000. Interest is paid each December 31, and the bonds mature in five years. Lionel classifies the investment as...
Inglis City had a beginning cash and cash equivalents balance in its internal service fund of $895,635. During the current year, the following transactions occurred: 1. Interest received on...
A company generated $124,200 in net income during the year. Also during the year, the company recorded $12,800 in depreciation expense and experienced a $2,300 decrease in accounts receivable and a...
Scott Inc. had the following activities during the year: Purchased a building by paying $40,000 down and financing the remaining $100,000 on a 5-year note. Reissued 1,000 shares of treasury stock...
What is the relationship between economic growth, population growth, and environmental quality in developing countries?
What is the difference between corporate and clinical? How do they differ? Can they both have the same outcome? Include a reference list that supports your stance of no fewer than 3 scholarly...
How do we attain the desire for the freedom to purse one's passions, the desire for economic security and well-being, the desire for hope and progress in one's life utilizing higher-order thinking
Instructions FNCE 625 - Investment Analysis and Management Group Project - Case Study Guideline Introduction: In this group assignment, each team will collaboratively make a comprehensive report and...
21) The EOQ model is solved using calculus but the key intuition is that relevant total costs are minimized when relevant ordering costs equal relevant carrying costs. 22) Safety stock is used as a...
In the long-term, what do you recommend as overall policy in order to reduce or avoid the kinds of PPE shortages that occurred during the different waves of the COVID virus? In simple terms, how...
Explain how primary beneficiaries differ from foreseen beneficiaries. Give examples.
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. $ 57.30 per unit $ 10.30 per unit $ 7.80 per...
The $50-\mathrm{kg}$ block is dropped from rest at a height of $h=600 \mathrm{~mm}$ onto the bronze C86100 tube. If $L=900 \mathrm{~mm}$ determine the maximum normal stress developed in the...
How far is it possible for an entity to build up hidden amounts of profit (known as secret reserves) by making some adjustments in the profit and loss account for bad and doubtful debts?
The following trial balance has been extracted from Jody's books of account as at 30 April 2012: Required: Prepare Jody's trading and profit and loss account for the year to 30 April 2012 and a...
The following trial balance has been extracted from the books of Garswood as at 31 March 2010: Required: Prepare Garswood's trading and profit and loss account for the year to 31 March 2010 and a...
help me A 35% discount on 3 smart phone amounts to $385. What is the phone's list price? Answer =$ (rounded to the nearest cent)
What effect is there on the income statement and balance sheet when an expense is left too long as a liability
Which of the following programs covers custodial care? A HMOs B Medicare Part B C PPOs D Medicare Part A E Medicaid

A company sells equipment with a book value of $23,000 for $25,000 cash. Required How would the

Question:

Step by Step Answer:

a Under the indirect method the 2000 gain would be subtracted from net income to arrive ...View the full answer

Financial ACCT2

Students also viewed these Accounting questions