The following data are from a company\'s Automobile and the Accumulated Deprecia
ID: 2472091 • Letter: T
Question
The following data are from a company's Automobile and the Accumulated Depreciation—Automobile accounts:
Date
Automobile
Debit
Credit
Balance
Jan. 1
Balance brought forward
16,000
July 1
Traded for new auto
16,000
-0-
New auto
31,000
Accumulated depreciation -
Automobile
Jan. 1
Balance brought forward
12,000
July 1
One-half year's depreciation
2,000
14,000
Auto traded
14,000
-0-
Dec. 31
One-half year's depreciation
4,000
4,000
The old auto was traded for a new one, with the difference in values paid in cash. The income statement for the year shows a loss on the exchange of autos of USD 1,200.
Indicate the dollar amounts, the descriptions of these amounts, and their exact locations in a statement of cash flows—indirect method.
Date
Automobile
Debit
Credit
Balance
Jan. 1
Balance brought forward
16,000
July 1
Traded for new auto
16,000
-0-
New auto
31,000
Accumulated depreciation -
Automobile
Jan. 1
Balance brought forward
12,000
July 1
One-half year's depreciation
2,000
14,000
Auto traded
14,000
-0-
Dec. 31
One-half year's depreciation
4,000
4,000
Explanation / Answer
Cash Flow Net cash from invseting Activities Capital Expenditure Cash from Sale of old auto 800 Purchase of new auto -31000 Net cash from invseting Activities -30200
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