Equipment/date jan 1 debit credit balance 160,000/july 31 purchase of equipment
ID: 2360723 • Letter: E
Question
Equipment/date jan 1 debit credit balance 160,000/july 31 purchase of equipment debit 70,000 credit balance 230,000/sept 2 cost of equipment constructed debit 53,000 credit balance 283,000/nov 10 cost of equipment sold debit credit 49,000 balance 234,000/ Accumlated Deprection-equipment -date-jan1 baance debit credit balance 71,000 / nov 10 accumulated deprecetion on equipment sold debit 28,000 credit---- balance 43,000/ Retaining Earning -date- jan 1 balance debit credit balance 105,000/aug 23 dividend cash debit 17,000 credit--- balance 88,000/dec 31 net income debit credit 67,000 balance 155,000/ From the posting in these account i need to indicate how the information is reported on a statement of cash using the -- indirect method/the loss on disposal of plant assets was 5,000/cost of equipent contsrtucted is reporting in the investing section as decreased in cash of 53,000/ can you please show me how to set up account title debit side and credit side for chadry inc -partial statement of cashflow for the yr endging 12/31/14 also need to adjust to reconlie net income/can you please help with this homework solution and emailme to sidummy@yahoo.comExplanation / Answer
If you'll look at the information given, the cost of the equipment sold was $49,000 and the accumulated depreciation on it was $30,000. That leaves a book value of $19,000. Since there was a loss of $8,000, the equipment must have been sold for $11,000. So that's what you put as your cash flow from the sale of equipment.
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