Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hey there, I've tried to do this part of my homework but I got some of it wrong. Can anyone help me solve thos probelm,

Hey there, I've tried to do this part of my homework but I got some of it wrong. Can anyone help me solve thos probelm, please?

image text in transcribed

Sale of Asset Equipment acquired on January 3, 20Y3, at a cost of $585,000, has an estimated useful life of 15 years, has an estimated residual value of $117,000, and is depredated by the straight-line method a. What was the book value of the equipment a December 31, 20Y6, the end of the year? s 460, For decreases in accounts or outflows of cash, enter your answers as negative numbers. Round annual depreciation to the nearest dolar and use this amoun in your follow-on calculations. If no account or activity is affected, select No effect from the dropdown and leave the corresponding number entry box blank. bi. Assuming that the equipment was sold on July 1, 20Y7, for $234,000, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date of Balance Sheet Income Cash Flows Liabilities Stockholders' Equity 3 Accumulated Depreciation Equipment Accumulated Depreciation Equipment Equipment Retained Earnings 15,6 3 -156 July July Statement of Cash Flows Income Statement No effect Depreciation expense 15,6 b2. Assuming that the equipment was sold on July 1, 20Y7, for $234,000, illustrate the effects on the accounts and financial statement of the sale of the equipment. Statement of Balance Sheet Cash Flows Stateme Stockholders' Equity Assets Liabilities Equipment a Accumulated Depreciation Equipment a Accumulated Depreciation Equipment Cash Retained Earnings 460,20 3 140,40 -85,800 3 July 234,00E July Income statement of Cash Flows Investing 234,0or Loss on disposal of fixed assets 85,800 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions