Qs 12-8 computing cash from asset sales lo p3 the following information is from ellerby company’s comparative balance sheets. at december 31 current year prior year furniture $ 150,000 $ 208,500 accumulated depreciation—furniture (94,700 ) (116,700 ) the current year income statement reports depreciation expense on furniture of $24,000. during the year, furniture costing $58,500 was sold for its book value on december 31, current year. complete the general ledger accounts to calculate cash received from the sale of furniture.

$12,500

Explanation:

As provided:

Net opening balance of furniture = $208,500 - $116,700 = $91,800

Net closing value of furniture = $150,000 - $94,700 = $55,300

Depreciation expense for the year = $24,000

Opening balance of depreciation + Current year - Written off = Closing balance

= 116,700 + 24,000 - Written off = $94,700 = $46,000

The cost of the asset sold = $58,500

Depreciation written off for the year is charged on this asset only = $58,500 - $46,000 = Selling value = Cash received = $12,500

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.