Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An old machine is sold for 50.0006 (it was completely amortized). It is carried out an extraordinary maintenance on the rest of fixed assets of

image text in transcribedimage text in transcribed
An old machine is sold for 50.0006 (it was completely amortized). It is carried out an extraordinary maintenance on the rest of fixed assets of 20.000, completely capitalized. What are the corrects movements? O (a) Cash increases by 30.000, fixed assets increases by 20.000E, 50.000 as revenue in the Income Statement. (b) Cash increases by 30.000E , 50.000 as revenue in the Income Statement, 20.000 as cost in the Income Statement O (c) Cash increases by 30.000 , fixed assets decrease by 30.000. O (d) Cash increases by 50.000E , 50.000 as revenue in the Income Statement O (e) Cash increases by 50.000 , fixed assets decrease by 50.000E.Gamma is a company that produces furniture. Its balance sheet was as follows at 31/12/19 (data expresses in euro): ASSETS LIABILITIES Cash 300.000 Capital stock 450.000 Inventories of final 300.000 Net income 330.000 product Accounts receivables 140.000 Retained earnings 350.000 Fixed assets $60.000 Long-Term Debt 400.000 Raw materials inventory 20.000 Deferred income 170.000 WIP Inventories 80.000 Total assets 1.700.000 Total liabilities 1.700.000 During the 2020 the following events take place, answer the following questions using this starting balance sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting And Analysis

Authors: Lawrence Revsine, Daniel Collins

4th Edition

0073527092, 978-0073527093

More Books

Students also viewed these Accounting questions

Question

What is tone at the top, and how does it relate to fraud?

Answered: 1 week ago