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5 Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3 Analyze each of the following transactions by showing its effects on the accounting equation-specifically, Identify the accounts and amounts (including + or -) for each. January 1 Purchased equipment for $26,888 cash. Estimated useful life is six years and salvage value is $6,248. January 2 Paid $5,208 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $218 cash for minor repair costs to equipment. Date January 01 January 01 January 02 January 02 August 15 Equipment Cash Cash Equipment Cash Assets (+) increase (-) decrease (-) decrease (+) increase (-) decrease 26,000 5.200 210 = = = Equipment Liabilities (-) decrease 0 + + + + Repairs exp

5 Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3 Analyze each of the following transactions by showing its effects on the accounting equation-specifically, Identify the accounts and amounts (including + or -) for each. January 1 Purchased equipment for $26,888 cash. Estimated useful life is six years and salvage value is $6,248. January 2 Paid $5,208 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $218 cash for minor repair costs to equipment. Date January 01 January 01 January 02 January 02 August 15 Equipment Cash Cash Equipment Cash Assets (+) increase (-) decrease (-) decrease (+) increase (-) decrease 26,000 5.200 210 = = = Equipment Liabilities (-) decrease 0 + + + + Repairs exp

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3 Analyze each of the following transactions by showing its effects on the accounting equation-specifically, Identify the accounts and amounts (including + or -) for each. January 1 Purchased equipment for $26,888 cash. Estimated useful life is six years and salvage value is $6,248. January 2 Paid $5,200 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $210 cash for minor repair costs to equipment. Date January 01 January 01 January 02 January 02 August 15 Equipment Cash Cash Equipment Cash ager Assets (+) increase (-) decrease (-) decrease (+) increase (-) decrease 26,000 5,200 210 = = m - = Equipment Liabilities (-) decrease 0 + + + + Repairs exp
Transcribed Image Text:Exercise 8-16 (Algo) Financial statement impact of plant asset transactions LO P1, C3 Analyze each of the following transactions by showing its effects on the accounting equation-specifically, Identify the accounts and amounts (including + or -) for each. January 1 Purchased equipment for $26,888 cash. Estimated useful life is six years and salvage value is $6,248. January 2 Paid $5,200 cash to install automated controls on equipment. This betterment did not impact useful life or salvage value. August 15 Paid $210 cash for minor repair costs to equipment. Date January 01 January 01 January 02 January 02 August 15 Equipment Cash Cash Equipment Cash ager Assets (+) increase (-) decrease (-) decrease (+) increase (-) decrease 26,000 5,200 210 = = m - = Equipment Liabilities (-) decrease 0 + + + + Repairs exp
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