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8. During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the companys accounting records: From the
8. During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the companys accounting records:
From the Income Statement | ||
Depreciation expense | $ | 850 |
Loss on sale of equipment | 3,100 | |
From the Balance Sheet | ||
Beginning equipment | 19,900 | |
Ending equipment | 11,200 | |
Beginning accumulated depreciation | 1,900 | |
Ending accumulated depreciation | 1,830 | |
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8. During the period, Sanchez Company sold some excess equipment at a loss. The following information was colected from the company's accounting records: From the Income Statement Depreciation expense Loss on sale of equipment From the Balance Sheet Beginning equipment S 850 Ending equienymuialed depreciaticn Beginning accumuialed depreciaticn Ending acoumulated depreciatiarn 19,900 1,200 1,900 1,930 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 recalved from the sale. (Use the quipment and accumulated depreciation T-accounts to infer the boak value of the eqipment scld.) Coat of aupmant sold Accumulated depreciation on sod equipment Cash received from sale 2.chezCmpary uses the indirect mothod for the Operating Activities section of the cash flow value.) statement. What amount related to the sale would be added ar sublracted in the computasion of Net Cash Flows from Operating Activtios? (Iinput the amount as positiva 3. What amount related to the sale would be added or subtracted in the camputation of Net Cash Flows from Investing Activities? (Input the amount as positive value.)
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