Determine the original cost of the equipment

Assignment Help Managerial Accounting
Reference no: EM13918332

On January 1, 2013, Bacco Company had a balance of $72,350 in its Delivery Equipment account. During 2013, Bacco purchased delivery equipment that cost $22,100. The balance in the Delivery Equipment account on December 31, 2013, was $69,400. The 2013 income statement reported a gain from the sale of equipment for $5,000. On the date of sale, accumulated depreciation on the equipment sold amounted to $22,000.

Required: 

a. Determine the original cost of the equipment that was sold during 2013. 

b. Determine the amount of cash flow from the sale of delivery equipment that should be shown in the investing activities section of the 2013 statement of cash flows.

Reference no: EM13918332

Questions Cloud

What are the top five favorite foreign markets for firms : Drawing on the industry-based, resource-based, and institution-based views, explain how Pearl River, from its humble roots, became China's and the world's largest piano producer.
Legalization-decriminalization of drug beneficial to society : Under what circumstances, if any, might the legalization or decriminalization of drugs be beneficial to society?
Theories of morality application morality : Analysis of the three theories of morality Application Morality and Social Responsibility Philosophical perspectives and theories on morality contribute to an understanding of the deep
Journal entry to record : On January 31, 2010, Janet won the lottery and on the same day she decided to repay all of her original debts to everyone whom she owed money. Prepare the journal entry to record Walter's unexpected receipt of Janet's payment.
Determine the original cost of the equipment : On January 1, 2013, Bacco Company had a balance of $72,350 in its Delivery Equipment account.
Communication competencies needed in leaders : What are some key communication competencies needed in leaders today? Is individual communication more important than group or mass communication? Why or why not?
Arenas of health care politics : There are four policy arenas in health care politics subsidy, financing, reorganization, and regulatory.Arenas of Health Care Politics There are four policy arenas in health care politics subsidy
How can they enhance their capabilities for m&a : In this age of globalization, some gurus argue that all industries are becoming global and that all firms need to adopt a global strategy. Do you agree? Why or why not?
Frequency of drug use in middle school children : Imagine you were to create a survey that examined the frequency of drug use in middle school children. Referring back to the considerations for creating surveys presented in this module and in your textbook, what specific factors would you need to..

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Different types of budgets

What are some of the different types of budgets? Explain in detail one kind of budget covered in the text. Explain what the budget is employed for and what information it provides the business.

  Literature review and the methodology

Evaluate and use quantitative and qualitative information to measure financial and non financial performance of an organisation

  Cost of manufacturing plant

My company plans to build a new manufacturing facility in 14 years. If my company estimates that today's cost is 543,219,876 and the annual inflation is 5%, how much will be the manufacturing plant cost in 14 years?

  Sharing of non-private demographic information

Your supervisor recently instituted a plan that encourages her managers to share non-private demographic characteristics voluntarily provided by those who purchase your firm's final product.

  Determine success of the company in many different facets

Determine the success of the company in many different facets - determine how the organization or firm compares to its goals

  Evaluate the current economic climate

ou need to consider that it might be difficult to attract investors to part with the full $8.00 in one payment (minimum is 1,000 shares) given the current economic climate.

  Prepare a schedule showing allocation of service department

Prepare a schedule showing the allocation of service department costs to other departments. (Leave no cells blank - be certain to enter "0" wherever required.

  Compute the amount of cash flow associated

The following accounts and corresponding balances were drawn from Teva Company's 2014 and 2013 year end balance sheets:

  Differences between budget and cafr

Write down the difference between the budget and Comprehensive Annual Financial Report (CAFR)? Describe and provide examples.

  Joint cost-utilization of scarce resources

The Dallas plant of Oscar Chemical processes talphazine into zetazine and gammazine. A batch comprises of 20,000 gallons of talphazine, costing $11,000.

  The following journal entries are recorded in kiesha

The following journal entries are recorded in Kiesha Co.'s process cost accounting system.

  Cvp analysis of advanced electronics

Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relates to period just ended when the company manufactured and sold 42,000 speaker sets:

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