Question

At the end of its first year, the trial balance of Crane Company shows Equipment $22,400 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $3,400. Indicate the balance sheet presentation of the equipment at December 31.

Answer 1

Answer:

The balance sheet presentation is shown below:

Explanation:

Balance Sheet is one of the most vital financial statement, which is prepared at the year end or period end. In this statement, the company states the total assets as well as the liabilities and shareholders equity of the whole period.

This statement is prepared in order to know the financial position of the company at the fiscal or accounting period or year.

So, the Equipment at December 31, would amount to $19,000