Mindy's Turtle Rescue Store has a beginning balance in the equipment account of $70,000. During the year, they purchased $30,000 worth of equipment. At the end of the year, the balance in the equipment account was $80,000. The cost of the equipment that Mindy's Turtle Rescue Store sold was:

Question

Quizplus · Accepted Answer

The beginning balance in the equipment account plus the purchases of equipment equals $100,000 ($70,000 + $30,000). The ending balance in the equipment account is $80,000. To find the cost of the equipment sold, we need to subtract the ending balance from the beginning balance plus purchases:

$100,000 (beginning balance + purchases) - $80,000 (ending balance) = $20,000

Therefore, the cost of the equipment sold was $20,000, which is choice C.

Mindy's Turtle Rescue Store Has a Beginning Balance in the Equipment