EP FINANCIAL ACCOUNTING-MYACCOUNTINGLAB
5th Edition
ISBN: 9780134728858
Author: Kemp
Publisher: PEARSON CO
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Chapter 8, Problem 39BE
1.
To determine
Journalize the transaction for Corporation B regarding the sale of 1/8 of its plant and equipment.
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Company B's December 31 Year-End Balance Sheet reveals the following:
• December 31, 2020 net PPE of $865
• December 31, 2020 Accumulated Depreciation of $250
• December 31, 2021 net PPE of $770
• December 31, 2021 Accumulated Depreciation of $230
• Annual 2021 Depreciation Expense was $100
• During 2021, PPE was purchased for $560; all PPE purchases are made in cash.
• During 2021, the gain of the sale of PPE was $20
What is the journal entry Company B recorded to recognize 2021 depreciation expense?
Dr. Accumulated Depreciation $20
Cr. Depreciation Expense $20
Dr. Depreciation Expense $100
Cr. Accumulated Depreciation $100
Dr. Depreciation Expense $20
Cr. Accumulated Depreciation $20
Dr. Depreciation Expense $100
Cr. PPE $100
statement of cash flow
2019 GH¢’000
2018 GH¢’000
2017 GH¢’000
Cash flows from operating activities
Profit before income tax
32,548
35,430
11,576
Adjustments for:
- Depreciation
56,108
58,326
54,759
- Amortisation
1,185
971
563
- Loss/(profit) on disposal of property, plant and equipment
2,242
(9)
(566)
- Impairment charge
1,110
534
43
- Finance cost
19,579
19,392
30,724
- Finance income
(2,245)…
statement of cash flow
2019 GH¢’000
2018 GH¢’000
2017 GH¢’000
Cash flows from operating activities
Profit before income tax
32,548
35,430
11,576
Adjustments for:
- Depreciation
56,108
58,326
54,759
- Amortisation
1,185
971
563
- Loss/(profit) on disposal of property, plant and equipment
2,242
(9)
(566)
- Impairment charge
1,110
534
43
- Finance cost
19,579
19,392
30,724
- Finance income
(2,245)…
Chapter 8 Solutions
EP FINANCIAL ACCOUNTING-MYACCOUNTINGLAB
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - What is depreciation, and why is it used in...Ch. 8 - Prob. 5DQCh. 8 - Which depreciation method would be moot...Ch. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 1SCCh. 8 - Prob. 2SCCh. 8 - How should a capital expenditure for a long-term...Ch. 8 - Which depreciation method usually produces the...Ch. 8 - Prob. 5SCCh. 8 - Prob. 6SCCh. 8 - Prob. 7SCCh. 8 - Prob. 8SCCh. 8 - Prob. 9SCCh. 8 - Prob. 10SCCh. 8 - Prob. 11SCCh. 8 - Prob. 12SCCh. 8 - Prob. 1SECh. 8 - Long-term asset terms (Learning Objective 1) 5-10...Ch. 8 - Prob. 3SECh. 8 - Lump-sum purchase (Learning Objective 2) 5-10 min....Ch. 8 - Errors in accounting for long-term assets...Ch. 8 - Concept of depreciation (Learning Objective 3)...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Prob. 9SECh. 8 - Prob. 10SECh. 8 - Prob. 11SECh. 8 - Prob. 12SECh. 8 - Prob. 13SECh. 8 - Prob. 14SECh. 8 - Prob. 15SECh. 8 - Other long term assets (Learning Objective 8) 5-10...Ch. 8 - Prob. 17SECh. 8 - Prob. 18AECh. 8 - Prob. 19AECh. 8 - Prob. 20AECh. 8 - Prob. 21AECh. 8 - Depreciation methods (Learning Objective 3) 15-20...Ch. 8 - Prob. 23AECh. 8 - Prob. 24AECh. 8 - Prob. 25AECh. 8 - Prob. 26AECh. 8 - Prob. 27AECh. 8 - Prob. 28AECh. 8 - Prob. 29AECh. 8 - Prob. 30AECh. 8 - Prob. 31AECh. 8 - Prob. 32BECh. 8 - Prob. 33BECh. 8 - Prob. 34BECh. 8 - Prob. 35BECh. 8 - Prob. 36BECh. 8 - Prob. 37BECh. 8 - Prob. 38BECh. 8 - Prob. 39BECh. 8 - Prob. 40BECh. 8 - Prob. 41BECh. 8 - Prob. 42BECh. 8 - Prob. 43BECh. 8 - Prob. 44BECh. 8 - Prob. 45BECh. 8 - Long-term asset costs and partial-year...Ch. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51APCh. 8 - Prob. 52APCh. 8 - Prob. 53BPCh. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 55BPCh. 8 - Prob. 56BPCh. 8 - Prob. 57BPCh. 8 - Prob. 58BPCh. 8 - Prob. 59BPCh. 8 - Prob. 1CECh. 8 - Prob. 1CPCh. 8 - Continuing Financial Statement Analysis Problem...Ch. 8 - Prob. 1EIACh. 8 - Prob. 2EIACh. 8 - Financial Analysis Purpose: To help familiarize...Ch. 8 - Prob. 1IACh. 8 - Prob. 1SBACh. 8 - Written Communication A client of yours notified...
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