Instructions Question B (of ) E Save & Exit Sut During the period, Sanchez Compa

Question

Instructions Question B (of ) E Save & Exit Sut During the period, Sanchez Company sold some excess equipment at a loss. The following information was collected from the company's accounting/records: 910 3,800 From the Income Statement Depreciation expense Loss on sale of equipment From the Balance Sheet Beginning equipment Ending equipment Beginning accumulated depreciation Ending accumulated depreciation 20,200 10,900 1,980 1,850 No new equipment was bought during the period. Required: 11For the equipment that was sold, determine its original cost, its accumulated depredationand the cash received from the sale. Use the Aquipment and accumulated depreciation T- accounts to inter the book value of the equipment sold.) || depreciation on sold e Cash ieceived from sale ko

Explanation / Answer

1) Beginning equipment 20,200 less Ending equipment -10900 cost of Equipment sold 9,300 answer Beginning Accumulated depreciation 1,980 Add:Depreciation expense for the year 910 2,890 less:ending accumulated depreciation -1,850 Depreciation on the equipment sold 1,040 answer book value of equipment sold(9300-1040) 8260 less:loss on sale of Equipment -3,800 Cash received from sale 4460 answer 2) the loss on sale of Equipment of $3,800 would be added 3) the cash on sale of equipment of $4,460 would be Added

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