What amount of cash proceeds from the sale of equipment

Assignment Help Accounting Basics
Reference no: EM131730319

Question - The following are selected accounts from the comparative balance sheets and other data for Good, Bad & Ugly, Inc. All balances are normal.

December 31

Accounts

2016

2015

Cash

$76,105

$51,000

Land

180,000

142,500

Equipment

270,000

300,000

Accumulated Depreciation, Equipment

(75,000)

(67,500)

Long Term Notes Payable

170,000

150,000

Common Stock, $5 par

185,000

165,000

Paid in Capital in Excess of Par

32,500

0

Retained Earnings

91,450

87,500

Equipment costing $50,000 with accumulated depreciation of $30,000 was sold for a gain of $3,500.

Additional equipment was purchased by signing a new long-term note payable.

Net income for 2016 was $35,000.

Depreciation expense for the year was $37,500.

What amount of cash proceeds from the sale of equipment will be reported in the financing activities section of the Statement of Cash Flows for fiscal year 2016?

Reference no: EM131730319

Questions Cloud

How much interest will be paid annually on these bonds : On July 1, 2013, $9.0 million face amount of 8%, 12-year bonds were issued. How much interest will be paid annually on these bonds
How attitude and personality affect workplace performance : We regularly witness how attitude, emotions, and personality affect workplace performance.
Describe the equipment needed and the environment : Create a comprehensive lesson plan to teach a fundamental skill for an early childhood physical education class .
What are redeemable preference shares : 1. What are redeemable preference shares and from what source can they be redeemed?
What amount of cash proceeds from the sale of equipment : What amount of cash proceeds from the sale of equipment will be reported in the financing activities section of the Statement of Cash Flows for fiscal year 2016
Define direct materials cost and efficiency variances : What were the standard hours allowed for the units produced, direct materials cost and efficiency variances
Describe satisfaction with the quality of education students : A Gallup poll taken in August 2000 (Chambers, 2000) asked U.S. adults in a random sample of n = 1019 about their satisfaction with K-12 education.
About interviewing candidates for various positions : The HR Director at your organization pulls you into the office to talk to you about interviewing candidates for various positions.
Large proprietary company and a disclosing entity : A small proprietary company has many advantages compared with a large proprietary company and a disclosing entity. Discuss.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd