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XYZ Corp purchases a new piece of equipment at the end of this period for $90 cash. The equipment has a useful life of 5
XYZ Corp purchases a new piece of equipment at the end of this period for $90 cash. The equipment has a useful life of 5 years and XYZ will not begin depreciating it until the beginning of next period. XYZ Corp's balance sheet at the beginning of this period is shown below. Change all the numbers (if any) on the balance sheet to show the effect of the $90 purchase on the balance sheet at the end of this period. Cash 100 Accounts Payable 25 Accounts Receivable Other Current Liabilities 35 Inventory 40 Long-Term Debt 450 Equipment: Original Cost 1000 Paid-In Capital 50 Equipment: Depreciation 500 Retained Earnings 110 30
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