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A company has the following balances: Equipment $20,000, Accumulated Depreciatio

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Question: A company has the following balances: Equipment $20,000, Accumulated Depreciation $5,000, and Accounts Payable $3,000. What is the net amount for Equipment in the trial balance?

Options:

  1. $20,000
  2. $15,000
  3. $25,000
  4. $3,000

Correct Answer: $15,000

Solution: 

Net Equipment = Equipment - Accumulated Depreciation = $20,000 - $5,000 = $15,000.

A company has the following balances: Equipment $20,000, Accumulated Depreciatio

Practice Questions

Q1
A company has the following balances: Equipment $20,000, Accumulated Depreciation $5,000, and Accounts Payable $3,000. What is the net amount for Equipment in the trial balance?
  1. $20,000
  2. $15,000
  3. $25,000
  4. $3,000

Questions & Step-by-Step Solutions

A company has the following balances: Equipment $20,000, Accumulated Depreciation $5,000, and Accounts Payable $3,000. What is the net amount for Equipment in the trial balance?
  • Step 1: Identify the total value of Equipment, which is $20,000.
  • Step 2: Identify the total value of Accumulated Depreciation, which is $5,000.
  • Step 3: Calculate the net amount for Equipment by subtracting Accumulated Depreciation from Equipment: $20,000 - $5,000.
  • Step 4: The result of the calculation is $15,000, which is the net amount for Equipment.
  • Net Equipment Calculation – This concept involves understanding how to calculate the net value of equipment by subtracting accumulated depreciation from the original equipment cost.
  • Trial Balance Components – This concept tests knowledge of what constitutes a trial balance and how different accounts are represented.
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