During the period, Teens Trends sold some excess equipment at a loss. The following information was collected

Question:

During the period, Teen’s Trends sold some excess equipment at a loss. The following information was collected from the company’s accounting records:

From the income statement

Depreciation expense .......... $ 500

Loss on sale of equipment ....... 4,000

From the balance sheet

Beginning equipment ..........12,500

Ending equipment .......... 6,500

Beginning accumulated depreciation .... 2,000

Ending accumulated depreciation ...... 2,200


No new equipment was bought during the period.


Required:

For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale.

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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