Mail - Stone, Noah - Outlook X In Course: Fall 2020 AC221-741 P X Search Results | Course Hero X CengageNOWv2 | Online teach X MindTap - Cengage Learning X Cengage Learning X + C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false N Chapter 8 eBook Calculator 1. EX.08.01.ALGO Asset Disposa 2. EX.08.03.ALGO Assume that Chee Inc. purchased an asset on January 1, 2015, for $60,000. The asset had an estimated life of six years and an estimated residual value of $6,000. The company used the straight-line method to depreciate the asset. 3. EX.08.04.ALGO Assume that Chee Inc. sold the asset on July 1, 2017, and received $15,000 cash and a note for an additional $15,000. 4. EX.08.05.ALGO Required: 5. EX.08.07.ALGO 1. Identify and analyze the effect of the transaction for depreciation for 2017. Activity Operating 6. EX.08.09 Accounts Depreciation Expense Increase, Accumulated Depreciation - Asset Increase v 7. EX.08.12.ALGO Statement(s) Balance Sheet and Income Statement 8. PR.08.04.ALGO Feedback Check My Work How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses Accumulated Depreciation - Asset v X No Entry V No Entry V O V Depreciation Expense Feedback Check My Work Partially correct Identify and analyze the effect of the sale of the asset. Activity Investing V Accounts Accumulated Depreciation - Asset Decrease, Cash Increase, Asset Decrease, Note Receivable Increase, Loss on Sale of Asset Increase v Statement(s) Balance Sheet and Income Statement V Progress: 5/8 items Check My Work Previous Next Assignment Score: 93.98% All work saved. Email Instructor Save and Exit Submit Assignment for GradingMail - Stone, Noah - Outlook X In Course: Fall 2020 AC221-741 P X Search Results | Course Hero X CengageNOWv2 | Online teach X MindTap - Cengage Learning X Cengage Learning x + C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false E N Chapter 8 eBook Calculator 1. EX.08.01.ALGO Partially correct 2. EX.08.03.ALGO Identify and analyze the effect of the sale of the asset. 3. EX.08.04.ALGO Activity Investing v 4. EX.08.05.ALGO Accounts Accumulated Depreciation - Asset Decrease, Cash Increase, Asset Decrease, Note Receivable Increase, Loss on Sale of Asset Increase v Statement(s) Balance Sheet and Income Statement V 5. EX.08.07.ALGO Feedback 6. EX.08.09 Check My Work 7. EX.08.12.ALGO Record Sale: Book value = asset acquisition cost (amount recorded in account) less the accumulated depreciation. Increase Cash for amount received and increase a receivable. Remove asset account and the 8. PR.08.04.ALGO associated Accumulated Depreciation account. Determine gain or loss. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses Cash No Entry V No Entry V 0 Loss on Sale of Asset v Note Receivable v No Entry V No Entry 0 No Entry Asset V No Entry V No Entry V 0 No Entry v Accumulated Depreciation - Asset v No Entry v No Entry V No Entry V Feedback Check My Work Partially correct 2. How should the gain or loss on the sale of the asset be presented on the income statement? The gain or loss should appear in the Other Income/ Expense category v of the income statement to indicate that it is not v part of the normal operating activity of the company. Progress: 5/8 items Check My Work Previous Next Assignment Score: 93.98% All work saved. Email Instructor Save and Exit Submit Assignment for GradingMail - Stone, Noah - Outlook X Tin Course: Fall 2020 AC221-741 P X Homework Help - Q&A from Or X CengageNOWv2 | Online teach X MindTap - Cengage Learning X Cengage Learning X + C # v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false N Chapter 8 eBook Calculator 1. EX.08.01.ALGO Asset Disposal 2. EX.08.03.ALGO Assume that Chee Inc. purchased an asset on January 1, 2015, for $60,000. The asset had an estimated life of six years and an estimated residual value of $6,000. The company used the straight-line method to depreciate the asset. 3. EX.08.04.ALGO Assume that Chee Inc. sold the asset on July 1, 2017, and received $15,000 cash and a note for an additional $15,000. 4. EX.08.05.ALGO Required: 5. EX.08.07.ALGO 1. Identify and analyze the effect of the transaction for depreciation for 2017. Activity Operating V 6. EX.08.09 Accounts Depreciation Expense Increase, Accumulated Depreciation - Asset Increase v 7. EX.08.12.ALGO Statement(s) Balance Sheet and Income Statement v 8. PR.08.04.ALGO Feedback Check My Work The straight-line method of depreciation allocates cost of the asset evenly over time. Set up a T account for accumulated depreciation. Update the accumulated depreciation to the date of the sale. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses Accumulated Depreciation - Asset v -22,500 X No Entry V O V No Entry O V Depreciation Expense v Feedback Check My Work Partially correct Identify and analyze the effect of the sale of the asset. Activity Investing V Accounts Accumulated Depreciation - Asset Decrease, Cash Increase, Asset Decrease, Note Receivable Increase, Loss on Sale of Asset Increase v Progress: 5/8 items Check My Work Previous Next Assignment Score: 93.98% All work saved. Email Instructor Save and Exit Submit Assignment for GradingMail - Stone, Noah - Outlook X In Course: Fall 2020 AC221-741 P X Homework Help - Q&A from Or x CengageNOWv2 | Online teach X MindTap - Cengage Learning X Cengage Learning x + C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false N Chapter 8 eBook Calculator 1. EX.08.01.ALGO 2. EX.08.03.ALGO an asset on January 1, 2015, for $60,000. The asset had an estimated life of six years and an estimated residual value of $6,000. The company used the straight-line method 3. EX.08.04.ALGO et on July 1, 2017, and received $15,000 cash and a note for an additional $15,000. 4. EX.08.05.ALGO 5. EX.08.07.ALGO of the transaction for depreciation for 2017. 6. EX.08.09 pense Increase, Accumulated Depreciation - Asset Increase v 7. EX.08.12.ALGO nd Income Statement 8. PR.08.04.ALGO depreciation allocates cost of the asset evenly over time. Set up a T account for accumulated depreciation. Update the accumulated depreciation to the date of the sale. punting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a wer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' * Net Liabilities Equity Revenues Expenses Income sset v -22,500 X No Entry V O V No Entry V O V Depreciation Expense the sale of the asset. reciation - Asset Decrease, Cash Increase, Asset Decrease, Note Receivable Increase, Loss on Sale of Asset Increase v Progress: 5/8 items Check My Work Previous Next Assignment Score: 93.98% All work saved. Email Instructor Save and Exit Submit Assignment for GradingMail - Stone, Noah - Outlook X In Course: Fall 2020 AC221-741 P X Homework Help - Q&A from Or x CengageNOWv2 | Online teach X MindTap - Cengage Learning X Cengage Learning X + C # v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false N Chapter 8 eBook Calculator 1. EX.08.01.ALGO Capitalization of Interest and Depreciation 2. EX.08.03.ALGO During 2017, Gota Corp. Company borrowed $87,000 from a local bank for the construction of a new corporate office building. Gota used an additional $120,000 cash for the construction. Based on average accumulated expenditures, the amount of interest capitalized during 2017 was $8,000. Construction was completed, and the building was occupied on January 1, 2018. 3. EX.08.04.ALGO Required: 4. EX.08.05.ALGO 1. Determine the acquisition cost of the new building. 215,000 5. EX.08.07.ALGO 2. The building has an estimated useful life of 20 years and a $5,000 salvage value. Assuming that Gota uses the straight-line basis to depreciate its operating assets, determine the amount of depreciation 6. EX.08.09 expense for 2017 and 2018. If necessary, round any depreciation calculations to the nearest dollar. If an amount is zero, enter "0". Year Straight-Line Depreciation 7. EX.08.12.ALGO 2017 5,500 X 8. PR.08.04.ALGO 2018 10,500 Feedback Check My Work Capitalization of interest is the amount of interest that is capitalized (treated as an asset) based on the average accumulated expenditures. The average accumulated expenditure is used because this number represents an average amount of money tied up in the project over a year. The straight-line method of depreciation allocates cost of the asset evenly over time used in the business. Progress: 7/8 items Check My Work Previous Next Assignment Score: 93.98% All work saved. Email Instructor Save and Exit Submit Assignment for Grading
