MANAGERIAL ACCOUNTING W/CONNECT
3rd Edition
ISBN: 9781307583946
Author: Whitecotton
Publisher: MCG/CREATE
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Question
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
To calculate:
Cash received from the sale of equipment.
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During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the
company's accounting records:
From the Income Statement.
Depreciation expense
Loss on sale of equipment
From the Balance Sheet
Beginning equipment.
Ending equipment
Beginning accumulated depreciation
Ending accumulated depreciation
No new equipment was bought during the period.
Required:
1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use
the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.)
2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to
the sale would be added or subtracted in the computation of Net Cash Flows from Operating Activities?
3. What amount related to the sale would be added or subtracted in the computation of Net Cash Flows from Investing…
5. During the end of the year, YGX Company presented the following
information:
Equipment
Accumulated depreciation
However, the equipment is found to be impaired due to obsolescence
as well as physical damage. At year-end, the company has determined
the following information related to the equipment:
Undiscounted net cash inflows
Fair value less cost of disposal
Value in use or discounted net cash inflows
a. 1,500,000
b. 2,000,000
9,000,000
3,500,000
What amount should be reported as impairment loss for the year?
c. 500,000
d. 0
4,500,000
3,500,000
3,000,000
E12-14 (Algo) (Supplement B) Computing and Reporting Cash Flow Effects of the Sale of Equipment
During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the
company's accounting records:
From the Income Statement
Depreciation expense
Loss on sale of equipment
From the Balance Sheet
Beginning equipment
Ending equipment
$ 840
4,300
20,700
10,700
1,980
1,790
Beginning accumulated depreciation
Ending accumulated depreciation
No new equipment was bought during the period.
Required:
1. For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (Use
the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.)
2. Sanchez Company uses the indirect method for the Operating Activities section of the cash flow statement. What amount related to
the sale would be added or subtracted in the computation of Net Cash Flows from…
Chapter 12 Solutions
MANAGERIAL ACCOUNTING W/CONNECT
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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