Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Information related to capital assets is provided for three cases: Case A Capital assets Accumulated depreciation 20X2 $608,000 (313,100) 20X1 $593,000 (352,100) $ 294,900 $240,900

image text in transcribed
image text in transcribed
image text in transcribed
Information related to capital assets is provided for three cases: Case A Capital assets Accumulated depreciation 20X2 $608,000 (313,100) 20X1 $593,000 (352,100) $ 294,900 $240,900 The company sold an asset with an original cost of $110,600 at a loss of $7,500. Depreciation expense was $46,900. Other capital assets were acquired for cash. Case B 20X2 20X1 Capital assets $337700 $ 296,500 Accumulated depreciation (112,600) (129,700) $225,100 $ 166,800 The company sold an asset with an original cost of $75,000 and a net book value of $18,700 for a gain of $3700. Other capital assets were acquired for cash. Case C 20X2 20X1 Capital assets $ 1,110,000 $ 537,500 Accumulated depreciation (296,000) (203,900) $ 814,000 $ 333,600 The company sold an asset with an original cost of $148,000 and a netbook value of $99,900 for a gain of $31,500. Capital assets of $370,600 were acquired by issuing a long-term note to the vendor for the full amount Other capital assets were acquired for cash. The company sold an asset with an original cost of $148,000 and a net book value of $99,900 for a gain of $31,500. Capital assets of $370,600 were acquired by issuing a long-term note to the vendor for the full amount. Other capital assets were acquired for cash. Required: For each case, indicate items and amounts that would appear on the SCF, along with their classification. Assume that the operating activities section reflects the indirect presentation format. Assume that unexplained account changes result from logical transactions (Deductible amounts and Cash outflows should be indicated with minus sign.) Partial Statement of Cash Flow 20X2 Case A: Operating activities: Add: Depreciation expense Add: Gain on sale of capital asset Add: Loss on sale of capital asset Less: Depreciation expense Investing activities: Case C Operating activities investing activities (Deductible amounts and Cash outflows should be indicated with minus sign.) Partial Statement of Cash Flows 20X2 Case A: Operating activities: . Am Investing activities: Case B: Operating activities: Investing activities: Case C: Operating activities: Investing activities

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

Using QuickBooks Online For Accounting

Authors: Glenn Owen

3rd Edition

0357391691, 9780357391693

More Books

Students also viewed these Accounting questions

Question

LO6 Describe how to choose among the recruitment sources.

Answered: 1 week ago