The following is an Equipment account and its associated Accumulated Depreciation account:

Additional data:
1. Machine A was sold at a gain of $900
2. Machine B was sold for its scrap value of $200
3. Machine C was acquired during the year
Required
Analyze the two accounts and show, in journal entry form, the entries that would be made in preparation of the statement of cash flows to reflect all of the changes listed in theaccounts.

Transcribed Image Text:

Equipment Beginning Machine A 8, 100 balace 49,000 Machine 25,000 Machine B 5,200 Ending balance $60,700 Accumulated Depreciation Related to Beginning Machine A balance $29,000 12,000 $30,100 6,300 Related to Depreciation Machine B 4,600 Ending balance