Compute the amount of cash received from the sale of equipment. Cost of equipment sold Depreciation...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Compute the amount of cash received from the sale of equipment. Cost of equipment sold Depreciation to date of equipment sold Book value of equipment sold Gain (loss) on sale of equipment Cash received from sale of equipment 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 At June 30 Assets Cash 24 25 26 Accounts receivable, net Inventory Prepaid expenses Total current assets. Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities. Notes payable (long term) Total liabilities. IKIBAN INCORPORATED Comparative Balance Sheets Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2023 $87,500 65,000 63,800 4,400 220,700 124,000 (27,000) $317,700 $25,000 6,000 3,400 34,400 30,000 64,400 220,000 33,300 $317,700 2022 $44,000 51,000 86,500 5,400 186,900 115,000 (9,000) $292,900 $30,000 15,000 3,800 48,800 60,000 108,800 160,000. 24,100 $292,900 7 3 9 0 $1 Sales Cost of goods sold Gross profit IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2023 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $678,000 411,000 267,000 67,000 58,600 141,400 2,000 143,400 43,890 $99,510 42 43 Additional Information 44 a. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash. 45 b. The only changes affecting retained earnings are net income and cash dividends paid. 46 c. New equipment is acquired for $57,600 cash. 47 e. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. 48 1. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. 49 g. All purchases and sales of inventory are on credit. Cash paid for Equipment Equipment cost $57,600 $48,600 2 Required: 3 (2) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2023. 45 7 Cash flows from operating activities 8 Net income $99,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash 9 10 IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2023 11 12 13 Depreciation expense Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses 14 15 16 17 18 19 20 Net cash provided by operating activities 21 Cash flows from investing activities 22 23 24 Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities 25 Caph Aame from financina activation 58,600 (2,000) Select the proper amount from the Question Data tab. 22,700 1,000 (5,000) (9,000) (400) Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 9 Net cash used in financing activities 7 8 50 Net increase (decrease) in cash 31 Cash balance at prior year-end 32 Cash balance at current year-end 33 34 35 60,000 (30,000) Compute the amount of cash received from the sale of equipment. Cost of equipment sold Depreciation to date of equipment sold Book value of equipment sold Gain (loss) on sale of equipment Cash received from sale of equipment 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 At June 30 Assets Cash 24 25 26 Accounts receivable, net Inventory Prepaid expenses Total current assets. Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities. Notes payable (long term) Total liabilities. IKIBAN INCORPORATED Comparative Balance Sheets Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2023 $87,500 65,000 63,800 4,400 220,700 124,000 (27,000) $317,700 $25,000 6,000 3,400 34,400 30,000 64,400 220,000 33,300 $317,700 2022 $44,000 51,000 86,500 5,400 186,900 115,000 (9,000) $292,900 $30,000 15,000 3,800 48,800 60,000 108,800 160,000. 24,100 $292,900 7 3 9 0 $1 Sales Cost of goods sold Gross profit IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2023 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $678,000 411,000 267,000 67,000 58,600 141,400 2,000 143,400 43,890 $99,510 42 43 Additional Information 44 a. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash. 45 b. The only changes affecting retained earnings are net income and cash dividends paid. 46 c. New equipment is acquired for $57,600 cash. 47 e. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. 48 1. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. 49 g. All purchases and sales of inventory are on credit. Cash paid for Equipment Equipment cost $57,600 $48,600 2 Required: 3 (2) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2023. 45 7 Cash flows from operating activities 8 Net income $99,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash 9 10 IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2023 11 12 13 Depreciation expense Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses 14 15 16 17 18 19 20 Net cash provided by operating activities 21 Cash flows from investing activities 22 23 24 Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities 25 Caph Aame from financina activation 58,600 (2,000) Select the proper amount from the Question Data tab. 22,700 1,000 (5,000) (9,000) (400) Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 9 Net cash used in financing activities 7 8 50 Net increase (decrease) in cash 31 Cash balance at prior year-end 32 Cash balance at current year-end 33 34 35 60,000 (30,000)
Expert Answer:
Answer rating: 100% (QA)
Cost of equipment Sold 48600 Given Depreciation to ... View the full answer
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
Students also viewed these accounting questions
-
Account Titles cash in bank ordinary share capital share premium-ordinary preference share share premium-ps ppe-building ppe-land mortgage payable ppe-office furnitures & Notes Payable Smallspoon...
-
example given below Tasks: 1. Using the residual income model, prepare a valuation of the common stock of Best Buy as of Year 2 under the following assumptions (use Exhibit 9.6 in the textbook as an...
-
In this game, students fence off an area of the drill field and divide it up into a series of equally sized squares. (We will assume there are 500 such squares organized into a 20 by 25 matrix.) Each...
-
Discuss the two-pipe system, how it works, and its advantages and disadvantages.
-
Refer to Wal-Mart's Form 10-K in Appendix A. How important are the notes to financial statements? What are the major types of notes that Wal-Mart includes in its Form 10-K?
-
Elliott Corp. failed to record accrued salaries for 2019, $2,000; 2020, $2,100; and 2021, $3,900. What is the amount of the overstatement or understatement of Retained Earnings at December 31, 2022?
-
Explain the idea behind the following heuristics: most-constrained variable most-constraining variable least-constraining variable min-conflicts
-
At the end of January 2014, the records of Donner Company showed the following for a particular item that sold at $16 per unit: Required: 1. Assuming the use of a periodic inventory system, prepare a...
-
What are potential concerns that employees might have about an affiliation? How will you handle workforce issues, including the retention of executives, managers, and employees? How will motivation...
-
When selecting a cloud vendor to host your enterprise data and apps, you need to evaluate the service level agreement (SLA). a.Research the SLAs of two cloud vendors, such as Rackspace, Amazon, or...
-
Xo = 0.15, x 0.21, x = Make a divided difference table for f(x) = 1 + log10 x with data points at 0.23, x3 = 0.27, x4 = 0.32, x5 = 0.35 Compute a value for f'(0.268) from a quadratic interpolating...
-
Owners of sport franchises face tough decisions related to capital structure when they decide a new facility is needed. The St. Louis Cardinals were faced with these decisions when they decided to...
-
Diet Cola and Weight Gain in Humans A study found that American senior citizens who report drinking diet soda regularly experience a greater increase in weight and waist circumference than those who...
-
Sleep and Recognition of Facial Expressions. The ability to recognize and interpret facial expressions is key to successful human interaction. Could this ability be compromised by sleep deprivation?...
-
You are vice president of sales for your company and are speaking with your sales managers from around the country. You have been asked by the CEO to prepare a 5-minute presentation on why time and...
-
Late Night Eating It is well-known that lack of sleep impairs concentration and alertness, and this might be due partly to late night food consumption. A 2015 study took 44 people aged 21 to 50 and...
-
On May 1, 2023, Xiao Company, a public company, acquired 211,120 of the 728,000 outstanding common shares from Zahra Company for a total of $1,504,000. This investment is part of Xiao Companys...
-
Would you use the adjacency matrix structure or the adjacency list structure in each of the following cases? Justify your choice. a. The graph has 10,000 vertices and 20,000 edges, and it is...
-
Income recognition for a contractor. On October 15, 2005, Flanikin Construction Company contracted to build a shopping center at a contract price of $180 million. The schedule of expected and actual...
-
One can most easily accomplish the reporting objective of the income statement under the accrual basis of accounting and the reporting objective of the statement of cash flows by issuing a single...
-
Firm A issues $1,000,000 face value. 9% semiannual coupon bonds at a price to yield 8% compounded semiannually. Firm B issues $1,000,000 face value, 7% semiannual coupon bonds at a price to yield 8%...
-
If item Y is the parent of Z and item X is the parent of Y, which item is the finished good?
-
If a shipment is needed in week 8 and the lead time on its arrival is always 3 weeks, when should the shipment be ordered?
-
Maynard Associates has 62 units of a certain product on hand currently. The demand forecast for the next two planning periods is 25 units each period. Maynard Associ- ates has no plans for production...
Study smarter with the SolutionInn App