Question

On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $445,000 and accumulated depreciation of $89,000. During 2018, the company plans to purchase additional equipment costing $95,000 and expects depreciation expense of $37,500. Additionally, it plans to dispose of equipment that originally cost $49,500 and had accumulated depreciation of $7,100. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2018 budgeted balance sheet are:

Answer 1

Equipment December 31th,2018 490,500

Accumulated Depreciation December 31th,2018 119,400

Equipment net December 31th,2018 371,100

Step-by-step explanation:

As always on accounting an account will have:

a beginning balance

transaction which increase the balance

a type of transaction that decreases

and the ending balance which the result of the transaction impact onth beginning balance

Equipment:

Beginning + purchase - disposal = Ending

445,000 + 95,000 - 49,500 = 490,500

Accumulated depreciation:

Beginning + depreciation expense - acc depreciaiton on disposal assets = ending

89,000 + 37,500 - 7,100 = 119,400

Equipment net

Will be Equipment - Accumulated depreciaton