Chapter 8 - Gain or Loss 3 Identify which financial...

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Activity #9 1.  Zepeda and Sons buy equipment on  May 1, 2006  for $125,000 cash.  They  estimate the equipment will have a salvage value of $5,000 and a useful life  of 4 years.  Write the journal entry to record depreciation as of 12/31/06. 12/31 How is the accounting equation impacted by this journal entry?  (Circle one per line) Assets Increase Decrease No Change Liabilities Increase Decrease No Change Equity Increase Decrease  No Change What is the book value (net equipment) as of 12/31/ 07 ? 2.  Assume equipment with a cost of $25,000 has accumulated depreciation on  January 1, 2007, of $22,000.  As of March 1 st  there is $1,000 more  depreciation.  If Zepeda and Sons sells this equipment on March 1 st  for  $2,900 will there be a gain or a loss and how much will it be? Proceeds   ________________ Cost ___________ Less Accum Dep as of sale ___________ Book Value on Date of sale
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Unformatted text preview: ________________ Gain or Loss ________________ 3. Identify which financial statement the following accounts are found: (choose among Income Statement , Balance Sheet and Statement of Retained Earnings ) Equipment _________________________ Gain on Sale of Equipment _________________________ Patent _________________________ Accumulated Depreciation _________________________ Depreciation Expense _________________________ Amortization Expense _________________________ Long-term note payable _________________________ Dividends _________________________ Allowance for Doubtful Accounts _________________________ Accounts Receivable _________________________ Cost of Goods Sold _________________________ PLEASE PRINT (CLEARLY) THE NAME OF EACH MEMBER OF TODAY’S GROUP ______________________________ _______________________________ ______________________________ _______________________________...
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