Great Plains Modeling Agency purchased $1,700 of office furniture at the beginning of the month. Depreciation Expense at the end of the month is $200. What is the balance of the Office Furniture account at the end of the month?

Question

Quizplus · Accepted Answer

The balance of the Office Furniture account remains at $1,700 because depreciation expense affects the accumulated depreciation account, not the original cost of the asset account.

Great Plains Modeling Agency Purchased $1,700 of Office Furniture at the Beginning