Question

The following information is for X Company for 2019:

Equipment, January 1	??
Equipment, December 31	$15,184
Purchases of equipment	$6,577
Cost of equipment sold	$3,779
Depreciation expense	$1,334

What was the balance of the Equipment account on January 1, 2019?

A: $3,104

B: $4,500

C: $6,526

D: $9,462

E: $13,720

F: $19,894

Answer 1

Equipment, January 1	??
Equipment, December 31	$15,184
Purchases of equipment	$6,577
Cost of equipment sold	$3,779
Depreciation expense	$1,334

Equipment, December 31 = Equipment, January 1+Purchases of equipment-Cost of equipment sold-Depreciation expense

15,184 = Equipment, January 1+6,577-3,779-1,334

Equipment, January 1 = $13,720

Correct option is E.

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