The following selected information is from Ellerby Company\'s comparative balanc
ID: 2512149 • Letter: T
Question
The following selected information is from Ellerby Company's comparative balance sheets At December 31 Furniture Accumulated depreciation-Furniture 2015 2014 $ 151,500 $ 210,500 (95,200) (117,200) The income statement reports depreciation expense for the year of $24,500. Also, furniture costing $59,000 was sold for its book value on December 31, 2015. Complete the general ledger accounts to calculate the cash received from the sale of furniture. Furniture Accumulated Depreciation Beg. bal 210,500 59,000 Beg. bal Sale of assets End. bal 151,500 End. bal 59,000 Cost Accumulated depreciation Book value (Cash received $ 58,000 58,000Explanation / Answer
Answer
Furniture
Beg. Bal.
210500
12500
Cash
46500
Accumulated Depreciation
210500
59000
End. Bal
151500
Accumulated Depreciation
Furniture
46500
117200
Beg. Bal.
24500
Depreciation expenses
46500
141700
95200
End. Balance
Cost [given]
$59000
Accumulated Depreciation
$46500
Book Value (Cash received)
$12500
Building
Beginning Balance
465000
145600
Cash
Gain on Sale
62600
282000
Accumulated Depreciation-Building
Purchase of Building
345000
445000
Ending Balance
Total
872600
872600
Total
Accumulated Depreciation - Building
Building
282000
324000
Beginning balance
Ending balance
139000
97000
Depreciation expense [balancing figure]
Total
421000
421000
Total
Cash received = $145,600 [ Book Value + Gain on sale]
Depreciation expense = $97,000
See Answer 3 if doubts regarding calculation of above figures arise.
Book Value
$45000
(-) loss on sale
$4000
Cash received
$41000
Original cost of equipment
$235000
(-) book Value
$45000
Accumulated depreciation on equipment sold
$190000
Add: Ending accumulated depreciation-Equipment
$110000
Less: Beginning accumulated deprecation-Equipment
$220000
Depreciation expense during the year
$80000
Furniture
Beg. Bal.
210500
12500
Cash
46500
Accumulated Depreciation
210500
59000
End. Bal
151500
Accumulated Depreciation
Furniture
46500
117200
Beg. Bal.
24500
Depreciation expenses
46500
141700
95200
End. Balance
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.