If total assets of Hercules Manufacturing,Inc.are $556,000,Equipment is carried in Hercules Manufacturing accounting records at:
A)$377,000.
B)$179,000.
C)$150,000.
D)$ 90,000.

Question

Quizplus · Accepted Answer

Equipment is a type of asset, so it is included in the total assets figure. To find the value of the equipment, we can use the following accounting equation: Assets = Liabilities + Owner's Equity. If we rearrange the equation to solve for assets, we get: Assets - Liabilities = Owner's Equity.

Assuming that Hercules Manufacturing has no liabilities, then we can say that Owner's Equity is equal to $556,000 (total assets). If we know the value of equipment, we can substitute it in for assets and solve for the missing value. So, we get:

Equipment - 0 = $556,000
Equipment = $556,000

Therefore, equipment is carried in Hercules Manufacturing accounting records at $179,000 (Choice B).

If Total Assets of Hercules Manufacturing,Inc