ACCOUTING PRIN SET LL INCLUSIVE
14th Edition
ISBN: 9781119815327
Author: Weygandt
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 17, Problem 2bDIE
To determine
Introduction: The cash flow statement is a financial statement that is prepared by the company to check the net decrease or increase in the cash balance during the year. The cash flow statement records the
To prepare: The statement of cash flows using the indirect method.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Rhonda Company reported $70,000 of net income for 2020. During the year, machinery costing $10,000 and with accumulated depreciation of $8,000 was sold at a loss of $500. Land and machinery were purchased during the year for cash. Selected account information follows:
2020
December 31
January 1
Land
$45,000
$32,000
Machinery
28,000
20,000
Accumulated Depreciation: Machinery
7,000
12,000
Required:Compute the net cash from investing activities for 2020 using the visual inspection method. Use the minus sign to indicate cash out flow.
The following balances were extracted from the books of Billion Precision for the year ended 31 December 2020.
Dr (RM)
Cr (RM)
Land
500000
Building
200000
Motor vehicles
120000
Plant and machinery
70000
Profit b/f as at 01.01.2020
237650
Capital
438000
Acc depreciation as at 1.1.2020 :
Dr (RM)
Cr (RM)
Building
60 000
Motor vehicles
69250
Plant and machinery
40000
Returns
3600
4100
Revenue
800000
Purchases
400000
Discounts
5000
Carriage Inwards
7700
Opening Inventory
52000
Provision for bad debts
2000
Trade receivables / Trade payable
66000
43200
Advertising
18000
Staff training course
4000
Bad Debts
12500
Motor Expenses
27000
Rental
90000
Bank
7600
Wages & Salaries
126000
1701800
1701800
Additional information:i. The provision for bad debts should be 4% of trade receivables.ii. Depreciation is to be charged as follows:-Buildings 2% on cost.-Plant and machinery 20% on…
I need to know how to calculate the gain on the equipment sold in part C
The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019:
December 31, 2020
December 31, 2019
Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019.
$
273,375
$
334,125
Required:
If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020?
Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine:
What the original cost of the equipment was.
What depreciation method is apparently being used.
When the equipment was acquired.
Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal…
Chapter 17 Solutions
ACCOUTING PRIN SET LL INCLUSIVE
Ch. 17 - Prob. 1QCh. 17 - Prob. 2QCh. 17 - Prob. 3QCh. 17 - Prob. 4QCh. 17 - Prob. 5QCh. 17 - Prob. 6QCh. 17 - 7. Why is it necessary to use comparative balance...Ch. 17 - 8. Contrast the advantages and disadvantages of...Ch. 17 - Prob. 9QCh. 17 - Prob. 10Q
Ch. 17 - Prob. 11QCh. 17 - Prob. 12QCh. 17 - Prob. 13QCh. 17 - Prob. 14QCh. 17 - Prob. 15QCh. 17 - Prob. 16QCh. 17 - Prob. 17QCh. 17 - Prob. 18QCh. 17 - Prob. 19QCh. 17 - Prob. 20QCh. 17 - Prob. 21QCh. 17 - Prob. 22QCh. 17 - Prob. 1BECh. 17 - Prob. 2BECh. 17 - Prob. 3BECh. 17 - Prob. 4BECh. 17 - Prob. 5BECh. 17 - Prob. 6BECh. 17 - Prob. 7BECh. 17 - Prob. 8BECh. 17 - BE17-9 Hinck Corporation reported net cash...Ch. 17 - BE17-10 Suppose in a recent quarter, Alliance...Ch. 17 - BE17-11 The management of Morrow Inc. is trying to...Ch. 17 - BE17-12 Suppose Columbia Sportswear Company had...Ch. 17 - Prob. 13BECh. 17 - Prob. 14BECh. 17 - Prob. 1DIECh. 17 - Prob. 2aDIECh. 17 - Prob. 2bDIECh. 17 - Prob. 3DIECh. 17 - Prob. 1ECh. 17 - E17-2 An analysis of comparative balance sheets,...Ch. 17 - Prob. 3ECh. 17 - Prob. 4ECh. 17 - Prob. 5ECh. 17 - Prob. 6ECh. 17 - Prob. 7ECh. 17 - Prob. 8ECh. 17 - Prob. 9ECh. 17 - Prob. 10ECh. 17 - Prob. 11ECh. 17 - E17-11 Suppose a recent income statement for...Ch. 17 - Prob. 13ECh. 17 - Prob. 14ECh. 17 - Prob. 1PSACh. 17 - Prob. 2PSACh. 17 - Prob. 3PSACh. 17 - Prob. 4PSACh. 17 - Prob. 5PSACh. 17 - Prob. 6PSACh. 17 - Prob. 7PSACh. 17 - P17-8A Data for Nosker Company are presented in...Ch. 17 - Prob. 9PSACh. 17 - Prob. 10PSACh. 17 - Prob. 11PSACh. 17 - Prob. 17CCCh. 17 - Prob. 2EYCTCh. 17 - Prob. 3EYCTCh. 17 - Prob. 4EYCTCh. 17 - Prob. 5EYCTCh. 17 - Prob. 7EYCTCh. 17 - Prob. 1ISTQCh. 17 - Prob. 2ISTQCh. 17 - Prob. 3ISTQCh. 17 - Prob. 4ISTQCh. 17 - Prob. 5ISTQCh. 17 - Prob. 1IFRECh. 17 - Prob. 2IFRECh. 17 - Prob. 3IFRP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000arrow_forwardReferring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?arrow_forwardZydus corp Balance Sheet as at December 31, 2020 and 2019 reported accumulated depreciation balances of 800,000 and 600,000, respectively. Property with a cost of 50,000 and a carrying amount of 40,000 was the only property sold in 2020. Depreciation charged to operations in 2020 was: A 210,000 B 200,000 C 220,000 D 190,000arrow_forward
- The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2020: Accumulated Depreciation $ Land Land improvements Building Equipment Automobiles Plant Asset $ 380,000 195,000 1,650,000 1,164,000 165,000 Transactions during 2021 were as follows: a. On January 2, 2021, equipment were purchased at a total invoice cost of $275,000, which included a $5,800 charge for freight. Installation costs of $30,000 were incurred. b. On March 31, 2021, a small storage building was donated to the company. The person donating the building originally purchased it three years ago for $22,000. The fair value of the building on the day of the donation was $16.000. c. On May 1, 2021, expenditures of $53,000 were made to repave parking lots at Pell's plant location. The work was necessitated by damage caused by severe winter weather. The repair doesn't provide future benefits beyond those originally anticipated. d. On November 1, 2021, Pell acquired a…arrow_forwardThe balance sheets of Tully Corp. showed the following at December 31, 2020, and 2019: December 31, 2020 $ 68,200 Equipment, less accumulated depreciation of $88,600 at December 31, 2020, and $55,375 at December 31, 2019. Required: a. If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of depreciation expense for 2020? b. Assume the same facts as in part a, and assume that the estimated useful life of the equipment is four years and the estimated salvage value is $23,900. Determine: Complete this question by entering your answers in the tabs below. 1. What the original cost of the equipment was. 2. What depreciation method is apparently being used. 3. When the equipment was acquired. c. Assume that the equipment is sold on December 31, 2020, for $56,000. Prepare the horizontal model and record the journal entry for the sale of the equipment. Indicate the financial statement…arrow_forward† Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Construct an income statement for Fincorp for 2021 and 2022. Note: Enter your answers in thousands of dollars. Fincorp Incorporated Income Statement 2021 2022 Revenue Administrative expenses Depreciation expense $ 4,000 $ 4,100 500 550 500 520 Interest expense 150 150 Cost of goods sold 1,600 1,700 Taxable income 1,250 1,180 Federal and state taxes 400 420 Net income $ 850 10 $ 760 What were reinvested earnings for 2022? Note: Enter your answer in thousands of dollars. Reinvested earningsarrow_forward
- Pina Colada Corp's statement of financial position at the end of 2019 included the following items: $1,255,000 $1,095,800 31,800 1,211,000 1,200,000 199,000 321,000 188,000 (144,000 ) (11,600 ) 41,600 $2,693,800 Current assets Land Buildings Equipment Accumulated depreciation-buildings Accumulated depreciation-equipment Intangible assets-patents Total The following information is available for the 2020 fiscal year: 1. 2. 3. 4. 5. 6. 7. 8. 9. Current liabilities Bonds payable Common shares Retained earnings (a) Total $2,693,800 Net income was $399,000. Interest paid is classified as operating activities. Equipment (cost of $20,300 and accumulated depreciation of $8,200) was sold for $10,400. Depreciation expense was $4,010 on the building and $9,130 on equipment. Amortization expense on a patent was $3,040. Current assets other than cash increased by $30,000. Current liabilities increased by $20,000. An addition to a building was completed at a cost of $32,600. Pina Colada prepares…arrow_forwardAt December 31, 2025, Blue Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings Equipment Less: Accumulated depreciation-equipment Total plant assets During 2026, the following selected cash transactions occurred. Apr. May June Date 1 Purchased land for $3,335,200. 1 Sold equipment that cost $909,600 when purchased on January 1, 2019. The equipment was sold for $257,720. 1 Sold land for $2,425,600. The land cost $1,516,000. July 1 Purchased equipment for $1,667,600. Dec. 31 Retired equipment that cost $1,061,200 when purchased on December 31, 2016. No salvage value was received. April 1 $26,520,000 11,934,000 60,640,000 7,580,000 May 1 Journalize the transactions. (Hint: You may wish to set up T-accounts, post beginning balances, and then post 2026 transactions.) Blue uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated…arrow_forwardPresented below is information related to equipment owned by Davis Company at December 31, 2020. Cost Accumulated Depreciation to date Expected future net cash flows (undiscounted) Fair value $7,750,000 750,000 Instructions: 6,250,000 6,600,000 Assume that Davis intends to dispose of the asset in the coming year. It is expected the cost of disposal will be $15,000. As of December 31, 2020, the equipment has a remaining useful life of 5 years. 1. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. 2. Prepare the iournal entry to record depreciation expense forarrow_forward
- These are the books of Riya Distributers as at 28 February 2021.Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. ona diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2020. Theequipment originally costed R3 000. The Accumulated depreciation is R 700.The profit/loss for the disposed equipment isarrow_forwardCompany 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 $100arrow_forwardAt December 31, 2022, Culver Corporation reported the following plant assets. Land Buildings Less: Accumulated depreciation-buildings June Equipment Less: Accumulated depreciation-equipment During 2023, the following selected cash transactions occurred. (a) Total plant assets Apr. 1 Purchased land for $2,785,200. May 1 1 1 Sold equipment that cost $759,600 when purchased on January 1, 2016. The equipment was sold for $215,220. Sold land for $2.025,600. The land cost $1,266,000. July Purchased equipment for $1,392,600. Dec. 31 Retired equipment that cost $886,200 when purchased on December 31, 2013. No salvage value was received. Bal. $ $26,690,000 Cash 15,097,050 Land 50,640,000 6,330,000 $3,798,000 Prepare a tabular summary that includes the plant asset accounts and balances shown on the December 31, 2022, balance sheet. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Accounting for Derivatives_1.mp4; Author: DVRamanaXIMB;https://www.youtube.com/watch?v=kZky1jIiCN0;License: Standard Youtube License
Depreciation|(Concept and Methods); Author: easyCBSE commerce lectures;https://www.youtube.com/watch?v=w4lScJke6CA;License: Standard YouTube License, CC-BY