Pad? 4:00 AM * 68%- a edugen.wileyplus.com MESSAGE MY INSTRUCTOR FULL SCREEN PRI

Question

Pad? 4:00 AM * 68%- a edugen.wileyplus.com MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Problem 13-3A a-b HW Chapter 13 The following selected account balances relate to the property, plant, and equipment accounts of Cullumber Inc. Exercise 13-13 a-d 2018 2017 2A Accumulated depreciation-buildings $339,500 $304,000 Accumulated depreciation-equipment 153,000 100,000 roblem 13-3A a-b Problem 13-4A 35,500 63,000 130,000 Depreciation expense-buildings Depreciation expense-equipment Land Buildings Equipment Gain on disposal (equipment) 35,500 53,000 60,000 770,000 770,000 305,000 250,000 0 Review Score Review Results by Study Objective 4,000 Additional information: Purchased $70,000 of land for cash Purchased $76,000 of equipment for a $15,000 down payment, financing the remainder with a bank loan. Equipment was also sold during the year 2. Calculate any cash receipts or payments related to the property, plant, and equipment accounts in 2018 Land purchase Equipment purchase Proceeds from disposal of equipment $ LINK TO TEXT LINK TO TEXT

Explanation / Answer

CASH RECEIPTS OR PAYMENTS RELATED TO PPE: Land purchase 70000 Equipment purchase 15000 Proceeds from disposal of equipment 15000 WORKINGS: Calculation of proceeds from disposal of equipment: Original cost of equipment disposed off = (250000+76000)-305000 = 21000 Accumulated depreciation of the equipment disposed off = 100000+63000-153000= 10000 Book value of equipment disposed off 11000 Cash proceeds from disposal= Book value+gain = 11000+4000 = 15000 INDICATION WHERE THE CASH RECEIPTS OR PAYMENTS WOULD BE CLASSIFIED ON THE STATEMENT OF CASH FLOWS OR ACCOMPANYING NOTES: Land purchase Cash flows from investing activities Equipment purchase Cash flows from investing activities Proceeds from disposal of equipment Cash flows from investing activities Note: During the year the company purchased equipment costing $76000 by paying $15000 cash and issuing a bank loan for $61000.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.