Reference no: EM132826110
Financial statements for Bernard Corp. are presented below:
BERNARD CORP. Statement of Financial Position
January 1, 2020
Assets
Cash $160,000
Accounts receivable 144,000
Buildings and equipment 600,000
Accumulated depreciation-buildings and equipment (200,000)
Patents 72,000
Total Assets $776,000
Liabilities and Equity
Accounts payable$ 76,000
Common shares460,000
Retained earnings240,000
Total Liabilities & Shareholders' Equity$776,000
BERNARD CORP.
Statement of Cash Flows (indirect method)
Year ended December 31, 2020
Cash provided by operating activities
Net income $200,000
Add back non-cash expenses:
Increase in accounts receivable$ (64,000)
Increase in accounts payable 32,000
Depreciation expense 60,000
Gain on disposal of equipment (24,000)
Amortization of patents 8,000
12,000
Cash provided by operating activities 212,000
Cash provided by (used in) investing activities
Sale of equipment 48,000
Purchase of land (100,000)
Purchase of buildings and equipment (192,000)
Cash used by investing activities (244,000)
Cash provided by financing activities
Payment of cash dividends (60,000)
Issuance of common shares 160,000
Cash provided by financing activities 100,000
Net increase in cash 68,000
Cash, January 1, 2020 160,000
Cash, December 31, 2020 $228,000
Total assets on the December 31, 2020 statement of financial position were $1,108,000. Accumulated depreciation on the equipment sold was $56,000.
Problem 1: When the equipment was sold, the Buildings and Equipment account was credited with?