You are performing a reconstruction analysis for equipment transactions during the year. You are given the following
Question:
You are performing a reconstruction analysis for equipment transactions during the year. You are given the following beginning and ending balances for the current year:
Feb. 1
Jan. 31
Equipment
$153,600
$152,400
Accumulated depreciation
65,700
68,700
During the year, the company sold equipment with a cost of $23,100 and accumulated depreciation of $6,800 for $9,200 cash. It purchased equipment during the year.
Using the reconstruction method, estimate the following. Record the dollar amounts, to the nearest dollar with no commas or dollar signs (e.g. 5623):
1. How much did the company spend on equipment during the year? Answer
2. How much equipment depreciation expense was recorded for the year? Answer
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward