During the period, Wong Company sold some excess equipment at a loss. The follow
ID: 2443029 • Letter: D
Question
During the period, Wong Company sold some excess equipment at a loss. The following information was collected from the company's accounting records.From Income Statement
Depreciation expense 820
Loss on sale of equipment 4,400
From the Balance Sheet
Beginning equipment 19,000
Ending equipment 12,100
Beginning accumulated depreciation 1,800
Ending accumulated depreciation 1,900
No new equip was bought during the period.
The required question asked:
For the equipment that was sold, determine its original cost, its accumulated depreciation, and the cash received from the sale. (use the equipment and accumulated depreciation T-accounts to infer the book vaule of the equip sold)
Explanation / Answer
Equipment Balance-beginning 19000 loss on sale of equipment 4400 depreciation 720 Balance-ending 12100 sale of equipment 1780 Total 19000 Total 19000 Accumulated depreciation balance-beginning 1800 Balance-ending 1900 depreciation 820 depreciation -equipment 720 Total 2620 total 2620 Note:The original cost of machinery sold=19000-12100=6900 book value of the machinery as ondate of sale Original cost of machinery=6900 Depreciation provided =720 book value of machinery =6180 less; loss on sale =4400 sale value of machinery =1780Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.