Why should firms manage thier environment
1 answer:
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Answer: The answer is provided below
Explanation:
a. The reconstructed journal entry has been prepared and attached.
b. The following are the effects it has on the investing section or the financing section of the statement of cash flows.
The first transaction will lead to a cash inflow of $8,000 from the investing activities.
The second transaction is non-cash transaction therefore, it will not be reported in either the financing or the investing activities.
The third transaction will lead to a cash inflow of $2,000 from the financing activities.
The fourth transaction will lead to a cash outflow from the financing activities.
Thw diagram has been attached.
Answer:
Loss on sale of machinery = $8,000
Explanation:
Under Straight line depreciation method, depreciation is calculated as follows:
Depreciation to be charged per annum over the life of asset is given by the formula: =
Depreciation = ($70,000 - $ 6,000) ÷ 8 years
Depreciation to be charged every year = $8,000
Now, total depreciation charged till the end of 6 years = 6 × $8,000 = $48,000
Book Value at the end of year 6 = $70,000 - $48,000= $22,000
Sale Value of the asset = $ 14,000
Loss on sale = $22,000 - $14,000 = $8,000