Question no: Axa

Walker Corporation reported the following related to property and equipment (all in millions): E (Click the icon to view the data.) Read the requirements. Requirement 1. T-accounts for Property and Equipment and Accumulated Depreciation have been opened for you. Enter the information as presented and solve for the unknown in each account. (Hint. Recall the types of transactions that make each of the two accounts increase and decrease. You are solving for the cost of Property and Equipment sold and the Accumulated Depreciation on those assets.) (Enter amounts in millions as provided in the problem statement. Abbreviations used: Accum. depr. = Accumulated depreciation.) Begin by posting to the Property and Equipment account. A Data Table i Requirements 1. T-accounts for Property and Equipment and Accumulated Depreciation have been opened for you. Enter the information as presented and solve for the unknown in each account. (Hint. Recall the types of transactions that make each of the two accounts increase and decrease. You are solving for the cost of Property and Equipment sold and the Accumulated Depreciation on those assets.) 2. Based on your calculations in requirement 1, calculate the book value of assets sold during 2018. What is the difference between the sales price and the book value? 3. Prepare the journal entry for the sale of property and equipment during 2018 Describe the effect of this transaction on the financial statements. Compare the sales price and the book value in the journal entry, and compare this to the difference you calculated in requirement 2. Describe briefly. 4. Prepare a T-account for Property and Equipment, Net. Repeat requirement 1. From the balance sheets: 12/31/18 12/31/17 Property and equipment $ 22,400 $ 20,560 Accumulated depreciation (16,740) (15,840) From the investing activities section of the 2018 cash flow statement: Cash used to purchase property and equipment $ (2,360) Proceeds from sale of property and equipment 43 From the 2018 income statement: Depreciation expense $ 1,250 Gain or loss on the sale of equipment 22