Required informationRequired information

E$8-5($Algo$)$ Determining Financial Statement Effects of an Asset Acquisition and Depreciation $($Straight$-$

Line Depreciation$)$ L$08-2,8-3$

$[$The following information applies to the questions displayed below.$]$

Steve's Outdoor Company purchased a new delivery van on January $1$ for $$59,000$ plus $$5,000$ in sales tax. The company

paid $$14,000$ cash on the van $($including the sales tax$),$ signing an $8$ percent note for the $$50,000$ balance due in nine

months $($on September $30).$ On January $2,$ the company paid cash of $$850$ to have the company name and logo painted

on the van. On September $30,$ the company paid the balance due on the van plus the interest. On December $31($the end

of the accounting period$),$ Steve's Outdoor recorded depreciation on the van using the straight$-$line method with an

estimated useful life of $5$ years and an estimated residual value of $$5,900.$

E$8-5$ Part $1$

Required:

Indicate the effects of each transaction on the accounting equation. $($Enter decreases to account categories as negative amounts.

If the transaction does not impact the accounting equation choose $"$No effect" in the first column under "Assets".$)$

P$8-7($Algo$)$ Inferring Activities Affecting Fixed Assets from Notes to the Financial Statements and

Analyzing the Impact of Depreciation on Cash Flows L$08-5,8-7$

$[$The following information applies to the questions displayed below.$]$

The following information is summarized from Note $20$ of a recent annual report of Andromidas Airlines. Numbers are in

millions of Singapore dollars:

Andromidas Airlines also reported the following cash flow details:

P$8-7$ Part $2$

Compute the amount of cash the company received for disposals for the current year. $($Enter your answers in millions rounded to $1$

decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).)$Required information

P$8-7($Algo$)$ Inferring Activities Affecting Fixed Assets from Notes to the Financial Statements and

Analyzing the Impact of Depreciation on Cash Flows L$08-5,8-7$

$[$The following information applies to the questions displayed below.$]$

The following information is summarized from Note $20$ of a recent annual report of Andromidas Airlines. Numbers are in

millions of Singapore dollars:

Andromidas Airlines also reported the following cash flow details:

P$8-7$ Part $2$

Compute the amount of cash the company received for disposals for the current year. $($Enter your answers in millions rounded to $1$

decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).)$