Managerial Accounting - With Access
3rd Edition
ISBN: 9781259847424
Author: Whitecotton
Publisher: MCG
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Chapter 12, Problem 22E
To determine
(a)
Introduction:
The original cost of the equipment is the cost at which the equipment is purchased. It considers all the cost of items that required for its purchase and putting the asset to use.
To calculate:
Original cost of the equipment.
To determine
(b)
Introduction:
To calculate:
Accumulated depreciation on the equipment.
To determine
(c)
Introduction:
An asset is an item of property that is owned by and individual or a firm. Assets are reported on the balance sheet of the company.
To calculate:
Cash received from the sale of equipment.
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Atkins Corporation has provided the following information for the year ended December 31, 2019:• The equipment account balance increased $200,000.• The equipment accumulated depreciation account increased $35,000.• Equipment costing $50,000 was sold during the year resulting in a $10,000 gain.• Depreciation expense on the equipment recorded during the year was $65,000.
Which of the following statements is incorrect with respect to preparation of the statement of cash flows? Assume that the equipment purchase and sale resulted in cash flows.
A.
A $60,000 cash inflow is reported from the equipment sale.
B.
Using the indirect method, net income is increased by the $65,000 depreciation expense.
C.
Using the indirect method, net income is decreased by the $10,000 gain on the sale of the equipment.
D.
A $30,000 cash inflow is reported from the equipment sale.
Fearless Flying Squirrels Company collected the following data in its accounting records in 2022:
From the income statement:
Depreciation expense
$1,100
Loss on sale of equipment
3,100
From the comparative balance sheet:
Beginning balance, equipment
$12,500
Ending balance, equipment
7,900
Beginning balance, accumulated depreciation
1,900
Ending balance, accumulated depreciation
2,300
No new equipment was purchased during the year.
Required: What was the cash in-flow from the sale of equipment in 2022?
Un Company sold office equipment with a cost of $42,960 and accumulated depreciation of $39,803 for $5,640.
a. what is the book value of the asset at the time of sale
b, what is the amount of gain/loss on the disposal
c. how would the sale affect net income and by how much
d. how would the sale affect the amount of total assets shown on the balance sheet
e. how would the event affect the statements of cash flows
Chapter 12 Solutions
Managerial Accounting - With Access
Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - What information does the statement of cash flows...Ch. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - As a junior analyst, you are evaluating the...Ch. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 1MCCh. 12 - Prob. 2MCCh. 12 - Prob. 3MCCh. 12 - Prob. 4MCCh. 12 - Prob. 5MCCh. 12 - Prob. 6MCCh. 12 - Prob. 7MCCh. 12 - Prob. 8MCCh. 12 - Prob. 9MCCh. 12 - Prob. 10MCCh. 12 - Prob. 1MECh. 12 - Prob. 2MECh. 12 - Prob. 3MECh. 12 - Prob. 4MECh. 12 - Prob. 5MECh. 12 - Prob. 6MECh. 12 - Prob. 7MECh. 12 - Prob. 8MECh. 12 - Prob. 9MECh. 12 - Interpreting Cash Flows from Operating, Investing,...Ch. 12 - Prob. 11MECh. 12 - Prob. 12MECh. 12 - Prob. 13MECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - (Supplement 12B) Preparing a Statement of Cash...Ch. 12 - Prob. 1GAPCh. 12 - Prob. 2GAPCh. 12 - Prob. 3.1GAPCh. 12 - Prob. 3.2GAPCh. 12 - Prob. 4.1GAPCh. 12 - Prob. 4.2GAPCh. 12 - Prob. 5GAPCh. 12 - Preparing and Interpreting a Statement of Cash...Ch. 12 - Prob. 7.1GAPCh. 12 - Prob. 7.2GAPCh. 12 - Prob. 1GBPCh. 12 - Prob. 2GBPCh. 12 - Prob. 3.1GBPCh. 12 - Prob. 3.2GBPCh. 12 - Prob. 4.1GBPCh. 12 - Prob. 4.2GBPCh. 12 - Prob. 5GBPCh. 12 - Prob. 6GBP
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