On its January 1, 2010, balance sheet, Dilbert Company reported equipment of $50, 000 and accumulated depreciation of $20, 000.During 2010, Dilbert sold equipment with an original cost of $5, 000.Selected information from Dilbert's 2010 statement of cash flows follows:
$\begin{array}{ll}
\text { Net income } & \$ 20,000 \
\text { Depreciation expense on equipment } & 2,000\
\text { Gain on sale of equipment } & 600 \
\text { Proceeds from sale of equipment } & 1,500 \
\text { Purchase of equipment } & 8,000
\end{array}$ Required:
Compute the amount of equipment and accumulated depreciation that should appear on Dilbert's December 31, 2010, balance sheet.

Question

On its January 1, 2010, balance sheet, Dilbert Company reported equipment of $50, 000 and accumulated depreciation of $20, 000.During 2010, Dilbert sold equipment with an original cost of $5, 000.Selected information from Dilbert's 2010 statement of cash flows follows:
 $\begin{array}{ll}
\text { Net income } & \$ 20,000 \
\text { Depreciation expense on equipment } & 2,000\
\text { Gain on sale of equipment } & 600 \
\text { Proceeds from sale of equipment } & 1,500 \
\text { Purchase of equipment } & 8,000
\end{array}$ Required:
Compute the amount of equipment and accumulated depreciation that should appear on Dilbert's December 31, 2010, balance sheet.

Quizplus · Accepted Answer

The Answer of On its January 1, 2010, balance sheet, Dilbert Company reported equipment of $50, 000 and accumulated depreciation of $20, 000.During 2010, Dilbert sold equipment with an original cost of $5, 000.Selected information from Dilbert's 2010 statement of cash flows follows:
 $\begin{array}{ll}
\text { Net income } & \$ 20,000 \
\text { Depreciation expense on equipment } & 2,000\
\text { Gain on sale of equipment } & 600 \
\text { Proceeds from sale of equipment } & 1,500 \
\text { Purchase of equipment } & 8,000
\end{array}$ Required:
Compute the amount of equipment and accumulated depreciation that should appear on Dilbert's December 31, 2010, balance sheet.

On Its January 1, 2010, Balance Sheet, Dilbert Company Reported