On January 1, Year 5, Raven Limo Service, Incorporated sold a used limo that had cost $64,000 and had accumulated depreciation of 536,000. The limo was sold for $26,000 cash. Which of the following shows how the sale of the limo would affect Raven's financial statements? Assets Cash + A. 26,000 + B. 26,000 + C. 26,000 + D. 26,000 + Balance Sheet Book Value of Limo (28,000) (28,000) (28,000) (28,000) = Liabilities + ΝΑ + ΝΑ + + + ΝΑ ΝΑ Stockholders' Equity (2,000) 2,000 (2,000) (2,000) Gain 2,000 2,000 ΝΑ ΝΑ Income Statement Loss = Net Income ΝΑ = NA = 2,000 = 2,000 = (2,000) 2,000 (2,000) (2,000) Statement of Cash Flows 26,000 IA 2,000 IA ΝΑ 26,000 IA

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…