Question

CRUZ, INC Comparative Balance Sheets December 31, 2019 2019 2018 $ 94,800 41.000 85,800 5,400 227,000 109,000 (17,000) $319,000 $ 24,000 51.000 95,800 4,200 175,000 119,000 (9.000) $285,000 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 15,000 $ 21.000 9,000 5,000 1,400 2,600 25.400 28,600 29,000 69,000 54,4007 97.600 229.000 35,600 $319,000 179.000 8.400 $285.000 $ 488,000 314,000 174,000 CRUZ INC. Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $37,600 Other expenses 89, 100 Income before taxes Income taxes expense Net income 126,700 47,300 17,300 $ 30,000 Furniture costing $55,000 is sold at its book value in 2019. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Furniture 119,000 Beg. bal. Sale of assets 55.000 45,000 End. bal. 109,000 Accumulated Depreciation Beg. bal. 9,000 (17,000) 2019 depreciation End. bal. 8.000 Cost Accumulated depreciation Book value (Cash received)

Answer 1

Answers:

Furniture
Beg. Bal.	$119,000
Sale of assets		$55,000
Acquisition of assets	$45,000
End. Bal.	$109,000
Accumulated Depreciation
Beg. Bal.		$9,000
Depreciation expense		$37,600
Sale of assets	$29,600
End. Bal.		$17,000
Cost		$55,000
Accumulated depreciation		($29,600)
Book value (Cash received)		$25,400

*Accumulated depreciation on sold furniture = Beg. Accu. Dep. + Dep. Exp. - End. Accu. Dep.

= 9,000+37,600-17,000

= $29,600