Question
show work Sale of an Asset Equipment acquired on January 9, 20Y3, at a cost of $733,000, has an estimated useful life of 19 years,
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Sale of an Asset
Equipment acquired on January 9, 20Y3, at a cost of $733,000, has an estimated useful life of 19 years, an estimated residual value of $161,260, and is depreciated by the straight-line method.
a. What was the book value of the equipment at the end of the fifth year, December 31, 20Y7? Round your interim calculations and final answer to the nearest dollar.
For decreases in accounts or outflows of cash, enter your answers as negative numbers. Round annual depreciation to the nearest dollar and use this amount 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.
b1. Assuming that the equipment was sold on July 1, 20Y8, for $366,500, illustrate the effects on the accounts and financial statement of depreciation for the six months until the sale date.
Balance Sheet | ||||||||||
Assets | = | Liabilities | + | Stockholders' Equity | ||||||
Accounts receivable Equipment Cash No effect | - | Accounts receivable Accumulated depreciation - equipment Cash No effect | = | Accounts payable Accumulated depreciation - equipment Capital stock No effect | + | Capital stock Loss on disposal of fixed Assets Retained earnings No effect | ||||
July 1. | fill in the blank | fill in the blank | fill in the blank | fill in the blank | ||||||
Statement of Cash Flows | Income Statement |
b2. Assuming that the equipment was sold on July 1, 20Y8, for $366,500, illustrate the effects on the accounts and financial statement of the sale of the equipment.
Balance Sheet | ||||||||||
Assets | = | Liabilities | + | Stockholders' Equity | ||||||
Accounts receivable Accumulated depreciation -equipment Cash No effect | + | Accounts payable Equipment Supplies No effect | - | Accounts payable Accumulated depreciation -equipment Depreciation expense No effect | = | Accounts payable Accumulated depreciation - equipment Capital stock No effect | + | Capital stock Retained earnings Sales No effect | ||
July 1. | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | fill in the blank 22 | fill in the blank 23 | |||||
Statement of Cash Flows | Income Statement |
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