The plant assets section of the comparative balance sheets of Anders Company is

Question

The plant assets section of the comparative balance sheets of Anders Company is reported below Anders Company Comparative Balance Sheets 2015 2014 Plant assets Equipment Accum. Depr.-Equipment 5 285,000 375,000 142.000 (252.000) Equipment, net Buildings Accum. Depr Buildings 5 143.000 123.000 5 485,000 505,000 (163.000) (348,000) Buildings, net 5 322,000 157.000 During 2015, equipment with a book value of S61,000 and an original cost of $210,000 was sold at a loss of 57,200 1. How much cash did Anders receive from the sale of equipment? Cash received from the sale of equipment$ 53,800 2. How much depreciation expense was recorded on equipment during 2015? epreci ation expense 3. What was the cost of new equipment purchased by Anders during 2015? Purchase of equipment

Explanation / Answer

Equipment Account A. Depreciation-Equipment Account To Balance B/d 375000 By Sales 210000 To Sales 149000 By Balance B/d 252000 To Bank Account (Purchases) 120000 By Depreciation 39000 (Balance Figure) (Balance Figure) By Balance c/d 285000 To Balance c/d 142000 Total 495000 Total 495000 Total 291000 Total 291000 Building Account A. Depreciation-Building Account To Balance B/d 505000 By Balance B/d 348000 By Balance c/d 485000 To Balance c/d 163000 Total 505000 Total 485000 Total 163000 Total 348000 1 Equipment Sold During the Year Equipment's Book Value 61000 Original Cost 210000 Accumalated Depreciation 149000 (Original Cost-Book Value) Loss on Sales 7200 Sales Value of Equipment 53800 (Sales Value-Book Value=Gain/(Loss) on Equipment) (Sales Value=Book Value+(Loss) on Equipment) 2 Depreciation Expenses in Equipment Account: Balance Figure in above Accumlated Depriciation-Equipment Account 39000 3 Amount of Equipment Purchased: Balance Figure in above Equipment Account 120000

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