Morris Inc. recorded the following transactions over the life of a piece of equipment purchased in 2018: Jan. 1, 2018 Purchased equipment for $15,000 cash. The equipment was estimated to have a five-year life and $5,390 salvage value and was to be depreciated using the straight-line method. Dec. 31, 2018 Recorded depreciation expense for 2018. Sept. 30, 2019 Undertook routine repairs costing $724. Dec. 31, 2019 Recorded depreciation expense for 2019. Jan. 1, 2020 Made an adjustment costing $2,590 to the equipment. It improved the quality of the output but did not affect the life and salvage value estimates. Dec. 31, 2020 Recorded depreciation expense for 2020. Jun 1, 2021 Incurred $375 cost to oil and clean the equipment. Dec. 31, 2021 Recorded depreciation expense for 2021. Jan. 1, 2022 Had the equipment completely overhauled at a cost of $7,290. The overhaul was estimated to extend the total life to seven years. The salvage value did not change. Dec. 31, 2022 Recorded depreciation expense for 2022. Oct. 1, 2023 Received and accepted an offer of $15,980 for the equipment. Required a. Use a horizontal statements model like the following one to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example b. Determine the amount of depreciation expense to be reported on the income statements for the years 2018 through 2022 c. Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of the years 2018 through 2022 d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, 2023 Required A Required B Required Required D se a horizontal statements model like the following one to show the net effects of these transactions on the elements of the inancial statements. The first event is recorded as an example. (Use + for increase, - for decrease, and NA for not affected. n the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). Use NA to indicate that an element was not affected by the transactions.) Show less MORRIS INC. Horizontal Statements Model Net Liabilities + Equity Income = NA + NA NA Date Assets Statement of Cash Flow IA Jan. 01. 2018 - Dec 31, 2018 Sept. 30, 2019 Dec 31, 2019 Jan. 01, 2020 Dec 31, 2020 June 01, 2021 Dec 31, 2021 Jan. 01, 2022 Dec 31, 2022 Od 01, 2023 Oct 01, 2023 Recured Required B > 5 of 7 d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, 2023 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of depreciation expense to be reported on the income statements for the years 2018 through 2022. (Round your answers to nearest dollar amount.) Year Depreciation Expense 2018 2019 2020 2021 2022 financial statements. The first event is recorded as an example, b. Determine the amount of depreciation expense to be reported on the income statements for the years 2018 through 2022 c. Determine the book value (cost-accumulated depreciation) Morris will report on the balance sheets at the end of the years 2008 through 2022 d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, 2023 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Determine the book value (cost - accumulated depreciation) Morris will report on the balance sheets at the end of the years 2018 through 2022. (Round intermediate calculations and final answers to nearest dollar amount.) Year Book Value 2018 2019 2020 2021 2022 Required a. Use a horizontal statements model like the following one to show the net effects of these transactions on the elements of the financial statements. The first event is recorded as an example, b. Determine the amount of depreciation expense to be reported on the income statements for the years 2018 through 2022 c. Determine the book value (cost accumulated depreciation) Morris will report on the balance sheets at the end of the years 2018 through 2022 d. Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, 2023 Complete this question by entering your answers in the tabs below. Required Required B Required Required Determine the amount of the gain or loss Morris will report on the disposal of the equipment on October 1, 2023. (Round intermediate calculations and final answer to nearest dollar amount Loss amount should be indicated with a minus sign)
