The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at the end of 2020 are shown here. Equipment Beg. bal. 80,600 Disposals 23,800 Acquisitions 40,000     End. bal. 96,800     Accumulated Depreciation—Equipment Disposals 8,700 Beg. bal. 47,800     Depr. exp. 13,300     End. bal. 52,400 In addition, Luo’s income statement reported a loss on the disposal of plant assets of $6,100. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow from sale of equipment   $

Question

The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at the end of 2020 are shown here.

Equipment
Beg. bal.
80,600
Disposals
23,800
Acquisitions
40,000
 
 
End. bal.
96,800
 
 
Accumulated Depreciation—Equipment
Disposals
8,700
Beg. bal.
47,800
 
 
Depr. exp.
13,300
 
 
End. bal.
52,400


In addition, Luo’s income statement reported a loss on the disposal of plant assets of $6,100. What amount was reported on the statement of cash flows as “cash flow from sale of equipment”? (Show amount that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Cash flow from sale of equipment  
$
 

Expert Answer

1 Rating

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Assume General Electric Company reports the following footnote in its 10-K report. December 31 (...

A: Calculate the difference in pre-tax income.Note: Inventory balance of company GE under FIFO for 2016...

Q: Federal Income Tax WithholdingBob Browning's weekly gross earnings for the present week were $2,770....

A: Calculate the amount of federal income tax with holdings:

Q: Vaughn Co. purchased land as a factory site for $456,000. The process of tearing down two old buildi...

A: Calculate the cost of land.

Q: Your answer is partially correct.  Try again.     Included in the December 31 trial balance of ...

A: Liquidity depicts how fast an asset can be immediately purchased or sold in the market at a value mi...

Q: If customers owe a company for sales which have already been delivered but not yet paid how is that ...

A: When the company sells goods to its customer on credit basis then the amount equivalent to the value...

Q: Support Department Cost Allocation—Direct Method Yo-Down Inc. produces yogurt. Information related t...

A: Compute the costs from support department that should be allocated to each production department:

Q: Christine and Doug are married. In 2018, Christine earns a salary of $250,000 and Doug earns a salar...

A: Medicare Tax: It is a tax imposed by the Federal Insurance Contributions Act on both employers and e...

Q: My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 17 -- State...

A: Statement of Cash flow of Ms. Mc.Kenzie for the year ending December 31, 20X4:

Q: how do you calculate the net income

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of ...

Q: A hotel’s food department statement shows the following:  Food revenue                             ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Your company manufactures bikes that sell for $10,000. Unit variable costs are $6,000 and totalmonth...

A: Since, target income is never less than fixed cost. We assume that company is earning their target i...

Q: taxpayer who has the following transactions during the current calendar tax year: Accrued bus...

A: Compute Geraldine’s net income from her business for current year as shown below:

Q: I have attached the Income Statement I will be referring to.  Please explain and clarify 1) What acc...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Farley Bains, an auditor with Nolls CPAs, is performing a review of Teal Mountain Inc.’s Inventory a...

A: Inventory is a current asset to the company. It consist of goods available for sale, goods in progre...

Q: What is the difference between Accumulated Depreciation and Depreciation expense?  What statements d...

A: Accumulated Depreciation is a contra asset, it consists of the accumulated depreciation value since ...

Q: Accrued Interest On July 1, Brimley Company issued a note with First National Bank with terms of 2 y...

A: Notes payable:Notes Payable is a written promise to pay a certain amount on a future date, with the ...

Q: Notes Payable Renchen Company, which manufactures steel tubing and casing for automobile production,...

A: 1. prepare the journal entry to record the borrowing transaction:

Q: Shadee Corp. expects to sell 640 sun visors in May and 350 in June. Each visor sells for $25. Shadee...

A: Flexible overhead budget: A flexible overhead budget is referred to a thorough plan for controlling ...

Q: Child and Dependent Care Credit (LO 7.3) Calculate the amount of the child and dependent care credit...

A: Child and dependent care credit:The child and dependent care credit is a non-refundable tax credit f...

Q: Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving...

A: Compute the gain on sale of investments:

Q: Operating Leverage Snellville Co. reports the following data: Sales $483,900 Variable costs 329,100 ...

A: Degree of Operating Leverage:  Degree of operating leverage is an efficiency ratio which evaluates t...

Q: Journal Entries for Payment of Employer Payroll Taxes Jason Chen owns a business called Chen Home Bu...

A: Record journal entry for payment of employee federal income tax, social security and Medicare taxes ...

Q: 3. Homework Chapter 10

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the liabi...

Q: Assume that during 2020, Cypress Semiconductor Corporation reported net cash provided by operating a...

A: Free cash flow:Free cash flow describes the net cash provided from operating activities after making...

Q: John and Joan pay $16,500 of qualified adoption expenses in 2018 to finalize the adoption of a quali...

A: Qualified adoption expenses: - Adoption fees- Court and attorney fees- Travelling expenses- Other ex...

Q: In 2013, BMJ Plumbing Company sold 250 water heaters for $1,050 each. The water heaters carry a 5-ye...

A: 1.

Q: I am taking TCA 221 class. I am in Ch.8 now, which is ACASH. I need to use the net method of recordi...

A: Using net method:1.Required journal entry for recording purchase of inventory: Working note: Calcula...

Q: J & G Manufacturing makes a single product by way of three separate processes. Details ofproduct...

A: Calculate the normal loss in kg.

Q: Debt Issued at a Premium (Straight Line) On December 31, 2013, Ironman Steel issued $950,000, 8-year...

A: Amortization of bond:The process of allocation and reduction of the discount or premium on bonds to ...

Q: On January 1, 2014 Victory Falls Company issued $2,100,000 in bonds that mature in 5 years. The bond...

A: As per authoring guidelines the first three parts of question is answered. Please repost the questio...

Q: Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. ...

A: Liabilities: Liabilities are the obligation of the business or amount payable by the business. Liabi...

Q: im unsure how to work this problem

A: Click to see the answer

Q: To prepare a closing entry what do you need to have and how do you find it?

A: Closing entry is prepared at the end of an accounting period. It is prepared to transfer the balance...

Q: Recording Purchases and Shipping Terms On May 12, Digital Distributors received three shipments of m...

A: Click to see the answer

Q: 1. Homework Chapter 10

A: Dividends:This is the amount of cash distributed to stockholders by a company out its earnings, acco...

Q: Required information   [The following information applies to the questions displayed below.]George a...

A: Click to see the answer

Q: Presented below are data on three promissory notes. Determine the missing amounts. (Use 360 days for...

A: a. Compute maturity date and total interest for note issued on April 1 as shown below:

Q: Shamrock Company is constructing a building. Construction began on February 1 and was completed on D...

A: Weighted-average cost method:Under Weighted average cost method, the company calculates a new averag...

Q: Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct mat...

A: Calculation of cost of completed and transferred-out production and inventory in process, ending:

Q: How do you find the trade discount and net price of an item if the list price is $199, the chain dis...

A: Calculate the trade discount.

Q: Richland Enterprises has budgeted the following amounts for its next fiscal year: Total fixed expens...

A: Compute contribution margin per unit as shown below:

Q: Brief Exercise 7-06 The cash register tape for Larkspur Industries reported sales of $10,169.80.Rec...

A: Prepare the journal entries:

Q: 2nl phary sutcln I0.19 Aceoutivg Total Problem 6 A factory uses a job costing system. The following ...

A:  a. Factory overhead rate-  attached table for calculationTherefore, factory overhead rate are Varia...

Q: Net sales revenue $280,000 Cost of goods sold 120,000 Beginning inventory 5,000 Ending invento...

A: Gross Profit is computed by subtracting the cost of goods sold from the sales revenue. Gross Profit ...

Q: Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it pur...

A: As per LIFO method it assumes units purchased at last is sold out first. On oct4, the sold units are...

Q: Yolanda is a cash basis taxpayer with the following transactions during the year: Cash receiv...

A: Business income:The income that is realized from the result of business activity is referred to as t...

Q: Braganza Enterprise uses a perpetual inventory system and has a highly labour intensive production p...

A: As the student has posted multiple questions and not mentioned which question to be answered, the so...

Q: Xavier and Yolanda have original investments of $50 000 and $100 000 respectively in a partnership. ...

A:  Partnership:Partnership is defined as an association of two or more persons to carry business for p...

Q: Franco and Elisa share income equally. During the current year the partnership net income was $40,00...

A: The partner's capital represents the amount contributed in the business by the partner. It is comput...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURR...

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its employ...