The following data are from a company”s Automobile and the Accumulated Depreciation—Automobile accounts:
|
Date Automobile |
Debit |
Credit |
Balance |
|
Jan. 1 Balance brought forward |
16,000 |
||
|
July 1 Traded for new auto |
16,000 |
-0- |
|
|
New auto |
31,000 |
||
|
Accumulated depreciation |
Automobile |
||
|
Jan. 1 Balance brought forward |
12,000 |
||
|
July 1 One-half year”s depreciation |
2,000 |
14,000 |
|
|
Auto traded |
14,000 |
-0- |
|
|
Dec. 31 One-half year”s depreciation |
4,000 |
4,000 |
|
The old auto was traded for a new one, with the difference in values paid in cash. The income statement for the year shows a loss on the exchange of autos of USD 1,200. Indicate the dollar amounts, the descriptions of these amounts, and their exact locations in a statement of cash flows—indirect method.