Great Lakes Modeling Agency purchased $800 of scanning equipment at the beginning of the month. This account had no opening balance. Depreciation Expense on this item for the month is $200. What is the balance of the scanning equipment account at the end of the month?

Question

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The balance of the scanning equipment account at the end of the month would still be the original cost of $800, as there were no sales or disposal of the equipment during the month. The depreciation expense of $200 would be recorded as an expense on the income statement, but would not affect the balance of the scanning equipment account on the balance sheet.

Great Lakes Modeling Agency Purchased $800 of Scanning Equipment at the Beginning