Question
The Kennel Storage Company had the following balances in its Equipment and Accumulated Depreciation on Equipment accounts at the beginning and end of 2021: January
The Kennel Storage Company had the following balances in its Equipment and Accumulated Depreciation on Equipment accounts at the beginning and end of 2021:
January 1 | December 31 | ||||||
---|---|---|---|---|---|---|---|
Equipment | $105,200 | $134,000 | |||||
Accumulated depreciation, equipment | 26,500 | 24,000 |
During 2021, Kennel engaged in the following transaction involving equipment: Sold equipment that originally cost $24,700 and had a current book value of $7,980 for $16,000. This was the only sale of equipment. Net income for 2021 was $364,200.
How much equipment-related depreciation expense did the Kennel Storage Company record during 2021?
Depreciation expense | $enter depreciation expense in dollars |
What was the cost of equipment purchased during the year?
Cost of equipment purchased | $enter cost of equipment purchased in dollars |
Using this limited information, prepare the operating and investing activities sections of the statement of cash flows. Here you will assume that there were no changes in current asset and current liability accounts other than cash. (Enter amounts that decrease cash flow either with a negative sign preceding the number, e.g. -15,000 or parenthesis e.g. (15,000).)
Kennel Storage Company Statement of Cash Flows For the Year Ended December 31, 2021 $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started