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Area Company purchased a delivery van at a cost of $30,000 cash on January 1, 2013. The van has an estimated useful life of 6 years and a $6,000 estimated residual value. What is the effect on the accounting equation of the purchase of the van? Assets=Liabilities+Stockholders Equity and Revenues-Expenses=Net Income
I need to know where the numberss go in these two equations please. I know what the depreciation will be but the question is asking how the purchase of the van effects the accounting equations. Does a credit get shown under assets? Does $30,000 get shown under assets for the van? Are there any numbers listed as stockholders equity, expenses, revenues, net income?
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