The beginning balance in the Equipment account was $4,000. The company purchased an additional $1,000 worth of Equipment. The ending balance in the account is:
A) debit of $3,000.
B) credit of $4,000.
C) debit of $5,000.
D) credit of $3,000.

Question

Quizplus · Accepted Answer

The beginning balance was a debit of $4,000, and with an additional purchase of $1,000, the ending balance is a debit of $5,000 (4,000 + 1,000). Equipment accounts are asset accounts, which increase on the debit side.

The Beginning Balance in the Equipment Account Was $4,000