Please Solve With Explanation and do not Give solution in images format QS 8-10 (Algo) Disposal of assets LO P2Garcia Company owns equipment that cost $82,800, with accumulated depreciation of $43,800.Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $51,500 cash,(2) $39,000 cash, and (3) $33,900 cash.View transaction list View journal entry worksheetA Record the sale of equipment assuming Garcia sells theequipment for $51,500 cash.BRecord the sale of equipment assuming Garcia sells theequipment for $39,000 cash.C Record the sale of equipment assuming Garcia sells theequipment for $33,900 cash.Note := journal entry has been enteredXDebit82,800Credit51,500

Sale of Equipment - The sale of equipment is a transaction that takes place when the company plan to…

Garcia Company owns equipment that cost $82,800, with accumulated depreciation of $43,800. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $51,500 cash, (2) $39,000 cash, and (3) $33,900 cash.

Garcia Company owns equipment that cost $82,800, with accumulated depreciation of $43,800. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $51,500 cash, (2) $39,000 cash, and (3) $33,900 cash.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 35BE: Disposal of an Operating Asset Jolie Company owns equipment with a cost of $85,500 and accumulated...

See similar textbooks

Related questions

Q: On January 1, 2021, Sweedle Company issues 6,000 shares of restricted stock to its CEO and 4,000…

A: The restricted stock units (RSU) are the stock issued by the company in the form of compensation to…

Q: 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three…

A: The percentage of completion method is one of the methods used in costing for contract costing, in…

Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management its budgeting…

A: The flexible budget report is prepared to compare the actual and standard costs of production. The…

Q: Assume the following information for Western Sales, Inc Common Stock, $1.00 par, 206,000 shares…

A: Outstanding share can be calculated by deducting treasury stock from total share . briefly…

Q: Peter loves potato fries, cheese sticks and lumpiang shanghai very much. His recipes are indeed…

A: The sales mix is required to compute when more than one product is produced using common resources.…

Q: Kenny is an Australian resident adult individual who is a professional footballer and employee of an…

A: Assessable income is a term used in taxation and refers to the total income an individual or entity…

Q: The beginning balances of inventory account and allowance for inventory write-down account of JAMES…

A: The cost of goods sold (COGS) is the total of all direct costs incurred in the production of a…

Q: Food, Inc. reported pretax book income of $ 4,000,000 in 2019, its first year of operations. During…

A: Temporary differences for income tax purposes are created when an item is recognized differently for…

Q: One Device makes universal remote controls and expects to sell 450 units in January, 800 in…

A: Budgeting is a process of estimation of future requirements. Production budget estimates requirement…

Q: Nothile Zibu is the owner of Zi eN Pty Ltd and she purchased trading stock in year 1 at a cost of…

A: Solving the question taking into Consideration the Income Tax Act of South Africa. The provisions…

Q: ABC was formed by an investor who exchanged 2,000,000 for 100,000 shares of stock on August 1. ABC…

A: A financial summary called an income statement, also known as a profit and loss statement or a…

Q: The beginning balances of inventory account and allowance for inventory write-down account of JAMES…

A: As per the conservatism principle of accounting, any income should be recorded only if it is…

Q: 3. The company enters a lease agreement requiring lease payments with a present value of $14.3…

A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Describe some of the key considerations and challenges involved in preparing and presenting the cash…

A: A cash flow statement is a financial statement that provides information about a company's cash…

Q: What are the internal controls that should be in place to ensure the accuracy and security of cash…

A: Answer Internal control meaning:- Internal control is a procedure for ensuring that an entity's…

Q: Required information A company that makes several different types of skateboards, Jennings Outdoors,…

A: The company raises money through selling of bonds and these bonds are sold at discount and that…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: To calculate the deferred income tax liability as of the end of Tringali Corporation's first year of…

Q: Laker Incorporated's fiscal year-end is December 31, 2024. The following is an adjusted trial…

A: A post-closing trial balance is a listing of all balance sheet accounts containing non-zero balances…

Q: Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership Inc.…

A: Calculation of allocated transaction price as follows: Performance obligation Transaction price…

Q: Sheridan Co. is considering the introduction of three new products. Per unit sales and cost…

A: The contribution margin per unit is calculated as difference between selling price and variable cost…

Q: Labrador Corp. reports a net operating loss of $100,000 during its first year of operations. The…

A: A deferred tax asset is an item on a company's balance sheet that reduces its taxable income in the…

Q: Beginning Ending Raw materials inventory $12,000 $ 8,000 Work-in-process inventory…

A: The cost of goods manufactured includes the cost of goods that are finished. The cost of goods sold…

Q: The year-end adjusted trial balance of Hilltoppers Corporation included the following account…

A: Trial Balance: Trial balance is a statement in which closing balance of all ledger accounts are…

Q: please answer questions 4, 5, 6, and 7

A: As per bartleby guidelines if a student asked multiple sub-questions in the primary question then we…

Q: fee Corporation expects to sell 530 sun shades in May and 400 in June. Each shade sells for $158.…

A: Budgeting - Budgeting is a estimation on the basis of past performance. Company makes budget for the…

Q: How can a company's investing and financing activities impact its cash flow statement? Provide…

A: A company's investing and financing activities can have a significant impact on its cash flow…

Q: Montrose instrumentation produces easurement equipment. One component, us in a variety of the…

A: The cash disbursement schedule is prepared to estimate the cash payments during the current period.

Q: Current Attempt in Progress * Your answer is incorrect. Sunland Ltd. estimates sales for the second…

A: Material cost refers to the total cost of the raw materials and other supplies needed to produce a…

Q: On January 1, 2018, Ceradyne Corporation had 84,000 common shares, recorded at $625,000, and…

A: The journal entries are prepared to record the transactions on regular basis. The dividend is…

Q: n 2022, Janet and Ray

A: As per IRS rules 2022 , the standard deduction is $ 25,900 for married filing…

Q: Suppose a college football coach makes a base salary of $2,400,000 a year ($200,000 per month).…

A: The Internal Revenue Service (IRS) is in charge of collecting federal taxes in the United States.…

Q: How can companies improve their accounting quality, and what are some best practices for maintaining…

A: Accounting quality refers to the accuracy, completeness, reliability, and relevance of a company's…

Q: The management of brewery Ipana oy is planning new strategies to increase profit. An alternative…

A: Free cash flow is amount of cash flow available from the operating of core business after adding non…

Q: Beginning Ending Raw materials inventory $12,000 $ 8,000 Work-in-process inventory…

A: Cost of goods sold is calculated by adding the beginning stock of finished goods in cost of goods…

Q: Sales are recorded under cash basis accounting when: Multiple Choice O The goods or services are…

A: The accounting transactions can be recorded differently under accrual and cash basis accounting.…

Q: Exercise 1-6 (Algo) Prepare an income statement (LO1-3) Below are the account balances for Cowboy…

A: Net Profit (Loss) = Total Revenue - Total expenses

Q: Problem 6-10 (Algo) Long-term contract; revenue recognition over time [LO6-8, 6-9] [The following…

A: The gross profit is calculated as revenue recognized and expenses incurred during the period. Using…

Q: A share of stock is now selling for $100. It will pay a dividend of $9 per share at the end of the…

A: Required return formula under CAPM MODEL:- RR = Rf + beta(Rm-Rf) (*) Price of share = DPS1/(RR-G)…

Q: Eva received $85,000 in compensation payments from JAZZ Corporation during 2022. Eva incurred…

A: Tax liability refers to an amount payable to the government by an individual or corporation that is…

Q: Sunland Construction Ltd. borrowed $210,000 from Atco Finance Ltd. on October 1, 2020, by issuing a…

A: Notes payable are a type of long-term liability that indicates the money that a company owes its…

Q: Her predicted sales are as follows Jan Feb Mar April May June July 300 350 350 450 500 550 600…

A: Working Notes WN No. Particulars Jan Feb March April May June July 1 Sales…

Q: Stonemaier Manufacturing Inc. has begun production on a new product. The primary cost of the product…

A: The contribution margin rate is a financial metric that measures the profitability of a product or…

Q: Gupta Company manufactures miniature speakers that are built into the headrests of high-end lounge…

A: Activity-based costing (ABC) is an accounting method that assigns costs to products or services…

Q: You purchased 100 shares of common stock on margin at $55 per share. Assume that the nitial margin…

A: Share trading in stock market is done on the basis of margins. Initial margin is amount of money…

Q: Henrich is a single taxpayer. In 2022

A: Taxable income refers to the sum value of money earned by a taxpayer that is subject to a compulsory…

Q: ROBLEM lling in for his supervisor, who suddenly left the company, Harvey quickly valuated the…

A: The production budget is prepared to determine the budgeted units to be produced. It shows the…

Q: Problem 8-1A (Static) Review current liability terms and concepts (LO8-1) Select the most…

A: Liabilities are the obligations of the business towards the creditors for operating the…

Q: the ending inventory cost and the cost of goods sold by three methods

A: Under first-in, first-out (FIFO) costs are taken from the oldest purchases first and the most…

Q: Orange Nebula Equipment Company (ONEC) manufactures a variety of harpooning equipment. The company…

A: Markup refers to the difference between the cost of producing or acquiring a product and the selling…

Question

Please Solve With Explanation and do not Give solution in images format

QS 8-10 (Algo) Disposal of assets LO P2
Garcia Company owns equipment that cost $82,800, with accumulated depreciation of $43,800.
Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $51,500 cash,
(2) $39,000 cash, and (3) $33,900 cash.
View transaction list View journal entry worksheet
A Record the sale of equipment assuming Garcia sells the
equipment for $51,500 cash.
B
Record the sale of equipment assuming Garcia sells the
equipment for $39,000 cash.
C Record the sale of equipment assuming Garcia sells the
equipment for $33,900 cash.
Note :
= journal entry has been entered
X
Debit
82,800
Credit
51,500

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Explanation -

VIEW

Step 2: Computation -

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

QS 8-12 (Algo) Disposal of assets LO P2 Garcia Company owns equipment that cost $84,400, with accumulated depreciation of $44,600. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $52,700 cash, (2) $39,800 cash, and (3) $34,700 cash.
QS 8-3 (Algo) Lump-sum purchase of assets LO C1 Diego Company paid $200,000 cash to acquire a group of items consisting of land appraised at $48,000 and a building appraised at $192,000. Allocate total cost to these two assets and prepare an entry to record the purchase.
Exercise 8-21A (Algo) Computing and recording the amortization of intangibles LO 8-10, 8-11 Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets acquired were the following items. Patent with 4 remaining years of legal life Goodwill $39,700 41,900 Dynamo's financial condition just prior to the acquisition of these assets is shown in the following statements model. Balance Sheet Income Statement Assets Stockholders' Cash + 85,200 + Patent NA + + Goodwill NA = NA = Liabilities + Equity 85,200 + Revenue NA - - = Expenses = Net Income NA NA Statement of Cash Flows ΝΑ Required a. Compute the annual amortization expense for these items. b. Show the acquisition of the intangible assets and the related amortization expense for Year 1 in a horizontal statements model. c. Prepare the journal entries to record the acquisition of the intangible assets and the related amortization for year 1. Complete this question by entering your answers in the tabs below.…
Sale of a Building The Miller Company sold a building for $640,000 that had a book value of $720,000. The building had originally cost the company $19,200,000 and had accumulated depreciation to date of $18,480,000. Prepare a journal entry to record the sale of the building. Cash Description General Journal Debit Accumulated depreciation Loss on sale Building Check X 0 x 0 x 0 Credit 0 O O 0 x
xercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $410,670 for real estate with land, land improvements, and a building. Land is appraised at $220, 500; land improvements are appraised at $73,500; and the building is appraised at $196,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase.
Garcia Company owns equipment that cost $76,800, with accumulated depreciation of $40,800. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $47,000 cash, (2) $36,000 cash, and (3) $31,000 cash. View transaction list View journal entry worksheet No A ME PR Transaction 1 U Cash Accumulated depreciation Equipment Equipment Gain on sale of equipment CO General Journal 8 + + Debit 47,000 40,800 prt sc Credit 76,800 delete Ⓒ
The following assets are exchanged between Company A and Company B: Company A Company B Asset original cost $53,400 $65,100 Accumulated depreciation 32,630 39,600 Net book value 20,770 25,500 Fair value of asset 24,200 28,600 In addition, Company A paid Company B $4,400 cash.Required:Prepare the journal entry to record the transaction for Company A and B
Disposal of fixed asset Instructions Chart of Accounts First Questions Journal Instructions First Questions X Journal Equipment acquired on January 6 at a cost of C. Assuming that the equipment was sold on January 3 of Year 4 for $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of $459,240 has an estimated useful life of 19 year a. What was the annual amount of depreciation for account titles. and an estimated residual value of $62,805. the Years 1-3 using the straight-line method of depreciation? PAGE 1 a. What was the annual amount of Year 1 $ JOURNAL depreciation for the Years 1-3 using the depreciation ACCOUNTING FOUATION. straight-line method of depreciation? DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY expense b. What was the book value of the 1 Year 2 $ equipment on January 1 of Year 4? 2 depreciation c. Assuming that the equipment was sold expense 3 on January 3 of Year 4 for $379,920, Year 3 2$ 4…
Exchange of Assets Ashton Company exchanged a nonmonetary asset with cost of $30,000 and accumulated depreciation of $16,000 for another nonmonetary asset worth $12,000. Ashton also received $1,400 cash. In the entry to record this exchange, Ashton should record a: Oa. $2,000 loss Ob. $2,000 gain Oc. $600 loss Od. $600 gain Lower of Cost or Market Moore Company uses the LIFO inventory method and carries Product A in inventory on December 31, 2016, at its unit cost of $9.50. Because of a sharp decline in demand for the product, the selling price was reduced to $10.00 per unit. Moore's normal profit margin on Product A is $2.00, disposal costs are $1.00 per unit and the replacement cost is $6.50. Under the lower of cost or market rule, Moore's December 31, 2016, inventory of Product should be valued at a unit cost of: Oa. $9.00 Ob. $6.50 Oc. $9.50 Od. $7.00
Disposal of an Operating Asset Jolie Company owns equipment with a cost of $85,500 and accumulated depreciation of 76,200. Required: Prepare the journal entry to record the disposal of the equipment on April 9 assuming: 1. Jolie sold the equipment for $11,200 cash. 2. Jolie sold the equipment for $7,900 cash.
Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. $47,000 cash B. $36,000 cash C. $31,000 cash
Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of 16,000 for another nonmonetary asset worth 12,000. Ashton also received 1,400 cash. In the entry to record this exchange, Ashton should record a: a. 2,000 gain b. 2,000 loss c. 600 gain d. 600 loss