A manufacturing company purchased equipment on January 1, 2010 for $450,000. As of January 1, 2019, depreciation of $202,500 had been recorded on this asset. Depreciation expense for 2019 is $22,500. After the adjustments are recorded and posted at December 31, 2019, what are the balances for the Equipment and Accumulated Depreciation?

Question

A manufacturing company purchased equipment on January 1, 2010 for $450,000. As of January 1, 2019, depreciation of $202,500 had been recorded on this asset. Depreciation expense for 2019 is $22,500. After the adjustments are recorded and posted at December 31, 2019, what are the balances for the Equipment and Accumulated Depreciation?
A manufacturing company purchased equipment on January 1, 2010 for $450,000. As of January 1, 2019, depreciation of $202,500 had been recorded on this asset. Depreciation expense for 2019 is $22,500. After the adjustments are recorded and posted at December 31, 2019, what are the balances for the Equipment and Accumulated Depreciation?

Quizplus · Accepted Answer

The Equipment account balance remains unchanged at its purchase price of $450,000. The Accumulated Depreciation increases by the 2019 depreciation expense of $22,500, from $202,500 to $225,000.

A Manufacturing Company Purchased Equipment on January 1, 2010 for $450,000