Financial statements for Concord Corporation are given below: $4779000 $4779000

Question

Financial statements for Concord Corporation are given below:

$4779000

$4779000

$1342000

Total assets on the balance sheet at December 31, 2018 are $6651000. Accumulated depreciation on the equipment sold was $332000.

When the equipment was sold, the Buildings and Equipment account received a credit of

Concord Corporation Balance Sheet January 1, 2018 Assets Equities Cash $  959000 Accounts payable $  454000 Accounts receivable 869000 Buildings and equipment 3700000 Accumulated depreciation—
buildings and equipment (1180000 ) Common stock 2720000 Patents     431000 Retained earnings     1605000

$4779000

$4779000

Explanation / Answer

Answer - $4,72,000

Buildings and Equipment account received a credit of $4,72,000

Book Value = Sale of equipment - Gain on sale of equipment         

                   = $290000 - $150000

                   = $140000

The amount of credit received = Book value + Accumulated depreciation on the equipment sold

= $1,40,000 + $3,32,000

= $4,72,000

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