Question

Some of the balances on Carla’s Cookies June 30th trial balance include Cash $100,000, Accounts Receivable $50,000, Equipment $25,000 and Accounts Payable $75,000. During the month of July, the company used cash to purchase $8,000 of equipment. How will this transaction affect the equipment account balance on the July 31st trial balance?

Answer 1

Answer:

Equipment: July ending balance: $ 33,000

Explanation:

Equipment Beginning Balance:     $ 25,000

Adds                                               $    8,000

Ending Balance as of July 31st :    $   33,000