Rockwell Automation is a leading provider of industrial automation power and controls. The annual report indicates that

Question:

Rockwell Automation is a leading provider of industrial automation power and controls. The annual report indicates that the company uses straight-line depreciation for its property and equipment. In addition, the annual report said, “Gains or losses on property transactions are recorded in income in the period of sale or retirement.”

Suppose Rockwell received $5 million for property and equipment that it sold.

1. Assume that Rockwell originally acquired the total property and equipment in question for $60 million and received the $5 million in cash. There was a loss of $8.5 million on the sale. Compute the accumulated depreciation on the property and equipment sold. Show the effects of the sale on the balance sheet equation, identifying all specific accounts by name.

2. (a) Show the journal entry and postings to T-accounts for the transaction in requirement 1.

(b) Repeat 2a, assuming that the cash sales price was $18 million cash instead of $5 million.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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

Step by Step Answer:

Answer rating: 80% (10 reviews)

1 Proceeds given 50 Less Net book value of property and equipment sold 5 85 135 Loss on sale of property and equipment given 85 Book value Original co...View the full answer

Answered By

Hassan Imtiaz

The following are details of my Professional Experience. Responsibilities Eight years of demanding teaching experience in the field of finance and business studies at Master’s Level. Completion of the given tasks within given time with quality and efficiency. Marketing professional with practical experience in and solid understanding of a diverse range of management applications, including market analysis, sales and marketing, team building and quality assurance. I have excellent skills to approach deal and sustain corporate clients / customers by demonstrating not only extraordinary communication and interpersonal skills but also high caliber presentation, negotiation and closing skills. Manage and follow up the day-to-day activities. Manage and co-ordinate the inventories. Fulfillment of all the tasks assigned. The following are details of my Areas of Effectiveness. Finance 1. Corporate Finance 2. Advanced Corporate Finance 3. Management of Financial Institutions 4. International Financial Management 5. Investments 6. Fixed Income 7. Real Estate Investment 8. Entrepreneurial Finance 9. Derivatives 10. Alternative Investments 11. Portfolio Management 12. Financial Statement Analysis And Reporting (US GAAP & IFRS) 13. International Financial Markets 14. Public Finance 15. Personal finance 16. Real estate 17. Financial Planning Quantitative Analysis 1. Time Value Of Money 2. Statistics 3. Probability Distribution 4. Business Statistics 5. Statistical Theory and Methods Economics 1. Principles of Economics 2. Economic Theory 3. Microeconomic Principles 4. Macroeconomic Principles 5. International Monetary Economics 6. Money and Banking 7. Financial Economics 8. Population Economics 9. Behavioral Economics International Business 1. Ethics 2. Business Ethics 3. An introduction to business studies 4. Organization & Management 5. Legal Environment of Business 6. Information Systems in Organizations 7. Operations Management 8. Global Business Policies 9. Industrial Organization 10. Business Strategy 11. Information Management and Technology 12. Company Structure and Organizational Management Accounting & Auditing 1. Financial Accounting 2. Managerial Accounting 3. Accounting for strategy implementation 4. Financial accounting 5. Introduction to bookkeeping and accounting Marketing 1. Marketing Management 2. Professional Development Strategies 3. Business Communications 4. Business planning 5. Commerce & Technology Human resource management 1. General Management 2. Conflict management 3. Leadership 4. Organizational Leadership 5. Supply Chain Management 6. Law 7. Corporate Strategy Creative Writing 1. Analytical Reading & Writing Other Expertise 1. Risk Management 2. Entrepreneurship 3. Management science 4. Organizational behavior 5. Project management 6. Financial Analysis, Research & Companies Valuation 7. And any kind of Excel Queries

4.80+ 150+ Reviews 230+ Question Solved

Related Book For book-img-for-question

Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

See More Books

Question Posted: Feb 20, 2015 08:57 AM

See More Questions

Rockwell Automation is a leading provider of industrial automation power and controls. The annual report indicates that

Question:

Step by Step Answer:

1 Proceeds given 50 Less Net book value of property and equipment sold 5 85 135 Loss on sale of property and equipment given 85 Book value Original co...View the full answer

Introduction to Financial Accounting

Students also viewed these Accounting questions