Question

Pepin Co. had an ending balance of $1,900 for Equipment. The company purchased $2,300 of equipment and retired $750 of equipment during the year. What was the beginning balance of the account?

Answer 1

The beginning balance of the Equipment account for Pepin Co. was $1,350, calculated by taking the ending balance of $1,900, subtracting equipment purchases of $2,300, and adding back the retired equipment value of $750.

Step-by-step explanation:

To calculate Pepin Co.'s beginning balance for the Equipment account, we need to consider the ending balance, the value of equipment purchases, and the value of equipment retired during the year.The formula to determine the beginning balance is:The beginning balance of the Equipment account can be found by subtracting the purchases and retirements from the ending balance.

In this case, the company purchased $2,300 of equipment and retired $750 of equipment during the year. So, the equation would be: Beginning balance = Ending balance - Purchases + Retirements = $1,900 - $2,300 + $750 = $1,350.Balance = $1,900Purchased Equipment = $2,300Retired Equipment = $750Substitute these values into the formula:Beginning Balance = $1,900 - $2,300 + $750Beginning Balance = $1,350Therefore, the beginning balance of the Equipment account was $1,350.