During the period, Sanchez Company sold some excess equipment at a loss. The fol

Question

During the period, Sanchez Company sold some excess equipment at a loss. The following information was ollected from the company's sccounting necords s 1020 From the Balance Sheet 20,700 1,740 No new equipment was bought during the period Required For the equipment that was sold, determine its original oost, its accumulated depreciation, and the cash neceived from the sale. (Use the equipment and accumulated depreciation T-accounts to infer the book value of the equipment sold.) Cash received trom 2. Sanchez Company uses the dec methodfor the Operating Attes section of the cash low Cash Flows from Operating Activites? eput the amount as positive value) temem what amount related to the sale would bo added or sunded inthe o rotation of Net

Explanation / Answer

1.

2.

The loss from sale of assets is added

3.

The cash receipt (5990) from sales of assets will be added

Beginning balance Ending balance Equipment 20700 10300 Accumulated depritiation 1930 1740

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