Answer:
$9,950
Explanation:
The amount of equipment shall be determined through accounting equation which is given as follows:
Total Assets=Total liabilities+Total equity
Total assets=Current+Non current assets
Current assets+Non current assets=Total liabilities+Total equity
Non current assets=Cost of land+Cost of equipment-accumulated depreciation on equipment
Current assets+Cost of land+Cost of equipment-accumulated depreciation on equipment=Total liabilities+Total equity
Applying given data in the question to the above equation
$19,800+$15,000+Cost of equipment-$1,550=$44,750
$33,250+Cost of equipment=$44,750
Cost of equipment=$44,750-$33,250=$11,500
Amount of equipment on balance sheet=$11,500-$1,550=$9,950
Answer:
$11,500
Explanation:
the basic accounting equation:
assets = liabilities + shareholders' equity
liabilities + shareholders' equity = $44,750, so assets = $44,750
equipment account = total assets - current assets - land + accumulated depreciation
equipment account = $44,750 - $19,800 - $15,000 + $1,550 = $11,500
Accumulated depreciation is a contra-asset account that lowers the current value of the asset (in this case equipment) and is also included in the balance sheet with a credit balance.
