Cholride
Jan 9, 2011, 11:55 AM
Im working on my summative right know for school and I am dead stuck on this special Sales invoice question. Here its is:
Source Document: Special Sales Invoice
For the following: Old Furniture was sold off to the highest bidder
Amount: $ 6,400.00 was the original value of the asset
Payment: No Cash Changed Hands
14% is the rate of amortization for this asset class
$ 4,480.00 of the asset's original value was amortized
$ 1,401.60 of the book value was the price paid for the asset
Okay, so I know A/R is going to be $1,401.60; Office Furniture is going to be $6,400.00; and Accumulated Amortization is going to be $4,480.00. However, I am unable to figure out the Depreciation Expense and Loss on Sale of Assets. Can someone please help me with this.
Many thanks
Source Document: Special Sales Invoice
For the following: Old Furniture was sold off to the highest bidder
Amount: $ 6,400.00 was the original value of the asset
Payment: No Cash Changed Hands
14% is the rate of amortization for this asset class
$ 4,480.00 of the asset's original value was amortized
$ 1,401.60 of the book value was the price paid for the asset
Okay, so I know A/R is going to be $1,401.60; Office Furniture is going to be $6,400.00; and Accumulated Amortization is going to be $4,480.00. However, I am unable to figure out the Depreciation Expense and Loss on Sale of Assets. Can someone please help me with this.
Many thanks