Lewis Inc.uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet:
Additional information provided by the company includes the following:
Equipment costing $104,000 was purchased for cash.
Equipment with a net asset value of $20,000 was sold for $28,000.
Depreciation Expense of $24,000 was recorded during the year.
With the help of T-account format,analyze the transactions affecting Property,Plant & Equipment,net.

Question

Lewis Inc.uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet:
   Additional information provided by the company includes the following:
Equipment costing $104,000 was purchased for cash.
Equipment with a net asset value of $20,000 was sold for $28,000.
Depreciation Expense of $24,000 was recorded during the year.
With the help of T-account format,analyze the transactions affecting Property,Plant & Equipment,net.

Quizplus · Accepted Answer

The Answer of Lewis Inc.uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet:
   Additional information provided by the company includes the following:
Equipment costing $104,000 was purchased for cash.
Equipment with a net asset value of $20,000 was sold for $28,000.
Depreciation Expense of $24,000 was recorded during the year.
With the help of T-account format,analyze the transactions affecting Property,Plant & Equipment,net.

Lewis IncUses the Indirect Method to Prepare Its Statement of Cash