From the balance sheets: 12/31/20 12/31/19 24,360 $ Property and equipment $ 22,840 Accumulated depreciation (17,230)...

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From the balance sheets: 12/31/20 12/31/19 24,360 $ Property and equipment $ 22,840 Accumulated depreciation (17,230) (15,840) From the investing activities section of the 2020 cash flow statement: Cash used to purchase property and equipment $ (2.280) Proceeds from sale of property and equipment 62 From the 2020 income statement: Depreciation expense 1.710 Gain or loss on the sale of equipment 22 1. T-accounts for Property and Equipment and Accumulated Depreciation have been opened for you. Enter information as presented, and solve for the unknown in each account. 2. Based on your calculations in requirement 1, calculate the carrying amount of assets sold during 2020. What is the difference between the sales price and the carrying amount? 3. Prepare the journal entry for the sale of property and equipment during 2020. Describe the effect of this transaction on the financial statements. Compare the sales price and the carrying amount in the journal entry, and compare this to the difference you calculated in requirement 2. Describe briefly. 4. Prepare a T-account for Property and Equipment, Net. Repeat requirement 1. Requirement 1. T-accounts for Property and Equipment and Accumulated Depreciation have been opened for you. Enter information as presented, and solve for the unknown in each account. (Enter amounts in millions as provided in the problem statement. Abbreviation used: Accum. depr. - Accumulated depreciation.) Begin by posting to the Property and Equipment account. Property and Equipment 12/31/19 Balance 12/31/20 Balance Accum. depr. of assets sold Cost of assets sold in 2020 Depreciation during 2020 Purchased during 2020 From the balance sheets: 12/31/20 12/31/19 24,360 $ Property and equipment $ 22,840 Accumulated depreciation (17,230) (15,840) From the investing activities section of the 2020 cash flow statement: Cash used to purchase property and equipment $ (2.280) Proceeds from sale of property and equipment 62 From the 2020 income statement: Depreciation expense 1.710 Gain or loss on the sale of equipment 22 1. T-accounts for Property and Equipment and Accumulated Depreciation have been opened for you. Enter information as presented, and solve for the unknown in each account. 2. Based on your calculations in requirement 1, calculate the carrying amount of assets sold during 2020. What is the difference between the sales price and the carrying amount? 3. Prepare the journal entry for the sale of property and equipment during 2020. Describe the effect of this transaction on the financial statements. Compare the sales price and the carrying amount in the journal entry, and compare this to the difference you calculated in requirement 2. Describe briefly. 4. Prepare a T-account for Property and Equipment, Net. Repeat requirement 1. Requirement 1. T-accounts for Property and Equipment and Accumulated Depreciation have been opened for you. Enter information as presented, and solve for the unknown in each account. (Enter amounts in millions as provided in the problem statement. Abbreviation used: Accum. depr. - Accumulated depreciation.) Begin by posting to the Property and Equipment account. Property and Equipment 12/31/19 Balance 12/31/20 Balance Accum. depr. of assets sold Cost of assets sold in 2020 Depreciation during 2020 Purchased during 2020

Answer rating: 100% (QA)

1 Property and equipment 123119 Beg bal 22840 62 During 2020 cashsale During 2020 cash Purchase 2280 ... View the full answer