Emerald Co
Subject:AccountingPrice:2.86 Bought7
Emerald Co. owned equipment with a book value of $127,500 that was sold during this accounting period for $31,900 in cash, and purchased new equipment for cash of $148,700. Emerald Co. would record a debit of:
Multiple Choice
- $148,700 and a credit of $31,900 to the cash account for a net cash inflow of $116,800.
- $148,700 and a credit of $95,600 to the cash account for a net cash inflow of $53,100.
- $31,900 and a credit of $148,700 to the cash account for a net cash outflow of $116,800.
- $95,600 and a credit of $148,700 to the cash account for a net cash outflow of $53,100.
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$31,900 and a credit of $148,700 to the cash account for a net cash outflow of $116,800
Step-by-step explanation
Equipment sold = $31,900 (Debit)
Equipment Purchase = $148,700 (Credit)
Net cash outflow = $148,700 - $31,900 = $116,800
