Furniture costing $74,800 is sold at its book value in 2021. Acquisitions of furniture total $60,300 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Beginning balance Ending balance Beginning balance Ending balance Cost Furniture Accumulated Depreciation Accumulated depreciation Book value (Cash received) 0 0 $

Intermediate Accounting: Reporting And Analysis
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Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
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Chapter11: Depreciation, Depletion, Impairment, And Disposal
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Furniture costing $74,800 is sold at its book value in 2021. Acquisitions of furniture total $60,300 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture.

At December 31
Assets
Cash
CRUZ, INCORPORATED
Comparative Balance Sheets
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
Furniture
Accumulated depreciation-Furniture
Total assets
Liabilities and Equity
Accounts payable
Wages payable
Income taxes payable
Total current liabilities
Notes payable (long-term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
Total liabilities and equity
2021
Sales
Cost of goods sold
Gross profit
$ 99,300
42,600
89,100
5,600
236,600
113,000
(17,500)
$ 332,100
$ 15,700
9,400
1,500
26,600
30,900
57,500
241,200
33,400
$ 332,100
CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Operating expenses (excluding depreciation)
Depreciation expense
Income before taxes
Income taxes expense
Net income
2020
$ 24,900
52,800
99,200
4,500
181,400
127,500
(9,600)
$ 299,300
$ 22,000
5,000
2,800
29,800
74,300
104, 100
192,600
2,600
$ 299,300
$ 512,300
329,700
182,600
93,500
39,400
49,700
18,100
$ 31,600
Transcribed Image Text:At December 31 Assets Cash CRUZ, INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2021 Sales Cost of goods sold Gross profit $ 99,300 42,600 89,100 5,600 236,600 113,000 (17,500) $ 332,100 $ 15,700 9,400 1,500 26,600 30,900 57,500 241,200 33,400 $ 332,100 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 24,900 52,800 99,200 4,500 181,400 127,500 (9,600) $ 299,300 $ 22,000 5,000 2,800 29,800 74,300 104, 100 192,600 2,600 $ 299,300 $ 512,300 329,700 182,600 93,500 39,400 49,700 18,100 $ 31,600
Furniture costing $74,800 is sold at its book value in 2021. Acquisitions of furniture total $60,300 cash, on which no depreciation is
necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of
furniture.
Beginning balance
Ending balance
Beginning balance
Ending balance
Cost
Furniture
Accumulated Depreciation
Accumulated depreciation
Book value (Cash received)
0
0
0
Transcribed Image Text:Furniture costing $74,800 is sold at its book value in 2021. Acquisitions of furniture total $60,300 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Beginning balance Ending balance Beginning balance Ending balance Cost Furniture Accumulated Depreciation Accumulated depreciation Book value (Cash received) 0 0 0
Expert Solution
Step 1 Introduction

Depreciation expense :— It is the allocation of depreciable cost of asset over useful life of asset. 

 

Accumulated Depreciation at end of period :— It is the sum of depreciation expense upto the particular period. 

 

 

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