Please solve $($d$)$

$125900$

lo record acquisition of land$)$

Accumulated Depreciation $-$ Equipment

Cash

Equipment

Gain on Disposal of Equipment

To record sale of equipment$)$

Accumulated Depreciation $-$ Equipment

Loss on Disposal of Equipment

Equipment

To record disposal of equipment$)$

Cash

lo record purchase of equipment$)$

Depreciation Expense

Accumulated Depreciation $-$ Equipment

To record depreciation expenses$)$

Lease Liability

To record right$-$of$-$use asset and lease liability$)$

Lease Liability

Cash

To record lease payment$)$

Interest Payable

Fo record interest expense$)$

Depreciation Expense

Accumulated Depreciation $-$ Right$-$of$-$Use A$5$

Accumulated Depreciation $-$ Right$-$of$-$Use A$5$

To record depreciation expenses$)$ Your answer is correct.

Identify the amount$($s$)$ of the cash flows that result from the transactions and events recorded in part $($b$).$ and

determine the classification of each one on the statement of cash flows within irvesting activities and financing

activities. $($Show amounts that decrease cash flow with either a negative sign e$.$g$.-15,000$ or in

parenthesis e$.$g$.(15,000))$

Proceeds from Sale $of$ Equipment

Purchase $of$ Equipment

$

Increase $in$ Interest Payable

Payment under Right$-of-$Use Lease $,$

$1($d$)$

Prepare the corresponding amounts to those prepared in part $($c$)$ for the operating activities section of the

statement of cash flows prepared using the indirect method. $($Show amounts that decrease cesh flow with

either a megative sign eg$--15,000$ or in parenthesis eg$-(15,000)])$

$5$

$5$

Decrease in Interest Payable

eT

Depreciation Expense on Equipment

Depreciation Expense on Right$-$of$-$Use Asset

Lis Gain on Disposal of Equipment

Assistance Used

$5$

$$

Sar

Gain on Disposal of Land

Increase in Interest Payable

Attempts: $0$ of $2$ used

Auto

Loss on Disposal of Equipment Sarasota Mills Limited follows IFRS, has a calendar year end, and adopted the policy of classifying interest paid as

financing activities. It engaged in the following transactions in $2023$:

$1$ The Land account increased by $$59,700$ over the year: Land that originally cost $$61,500$ was exchanged along

with a cash payment of $$3,700$ for another parcel of land with a fair value of $$95,300.$ Additional land was

acquired later in the year in a cash purchase.

The Equipment account had a balance of $$67,600$ at the beginning of the year and $$62,200$ at the end. The

related Accumulated Depreciation account decreased over the same period from a balance of $$24,100$ to

$$15,700.$ Fully depreciated equipment that cost $$10,500$ was sold during the year for $$1,300.$ In addition,

equipment that cost $$2,900$ and had a carrying amount of $$700$ was discarded, and new equipment was

acquired and paid for.

A five$-$year right$-$of$-$use lease for specialized equipment was entered into on July $2,2023.$ Under the terms of

the lease, the company agreed to make five annual payments $($in advance$)$ of $$32,000,$ after which the

equipment will revert to the lessor. The present value of these lease payments at the $8\%$ rate that is implicit in

the lease was $$137,988.$ The first payment was made as agreed. Sarasota depreciates equipment using the

straight$-$line method with no residual value.

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Your answer is correct.

Prepare the underlying journal entries that were made by Sarasota Mills during $2023$ to record all information

related to the changes in each capital asset account and related accounts over the year. $($Credit account titles

are automatically indented when the amount is entered. Do not indent manually. If no entry is

required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit

entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5\mathrm{.}275.]$

ccount Titles and Explanation

Cash

Land

Gain on Disposal of Land

Fo record exchange of land$)$

Cash

To record acquisition of land$)$

Accumulated Depreciation $-$ Equipment

Cash

Equipment

Equipment

Gain on Disposal of Equipment.

Debit

$25900$

$1$

$25900$

$1300$

$$

$10500$

$10500$