The following two scenarios are independent of one another.
1- An analysis of the general ledger accounts indicates that office equipment was sold for $39,600 during the year. The equipment originally cost $68,000 and had accumulated depreciation of $22,500 on the date of sale. Indicate how the elements of this transaction would be reported on the statement of cash flows using the indirect method.
2- An analysis of the general ledger accounts indicates that delivery equipment, which cost $97,000 and on which accumulated depreciation totaled $42,100 on the date of sale, was sold for $57,500 during the year. Using this information, indicate the items to be reported on the statement of cash flows.

Question

The following two scenarios are independent of one another.
1-	An analysis of the general ledger accounts indicates that office equipment was sold for $39,600 during the year.  The equipment originally cost $68,000 and had accumulated depreciation of $22,500 on the date of sale.  Indicate how the elements of this transaction would be reported on the statement of cash flows using the indirect method.
2-	An analysis of the general ledger accounts indicates that delivery equipment, which cost $97,000 and on which accumulated depreciation totaled $42,100 on the date of sale, was sold for $57,500 during the year.  Using this information, indicate the items to be reported on the statement of cash flows.

Quizplus · Accepted Answer

The Answer of The following two scenarios are independent of one another.
1-	An analysis of the general ledger accounts indicates that office equipment was sold for $39,600 during the year.  The equipment originally cost $68,000 and had accumulated depreciation of $22,500 on the date of sale.  Indicate how the elements of this transaction would be reported on the statement of cash flows using the indirect method.
2-	An analysis of the general ledger accounts indicates that delivery equipment, which cost $97,000 and on which accumulated depreciation totaled $42,100 on the date of sale, was sold for $57,500 during the year.  Using this information, indicate the items to be reported on the statement of cash flows.

The Following Two Scenarios Are Independent of One Another