Teddy's Pillows has beginning net fixed assets of $600 and ending net fixed assets of $730. Assets valued at $400 were sold during the year. Depreciation was $50. What is the amount of net capital spending

Question

Maribel Carson

Business

5 March, 17:38

Teddy's Pillows has beginning net fixed assets of $600 and ending net fixed assets of $730. Assets valued at $400 were sold during the year. Depreciation was $50. What is the amount of net capital spending

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Answers (1)

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Anderson · Answer 1

The amount of net capital spending is $ 580.

Explanation:

This question requires us to calculate net capital spending. The net capital spending can be calculated using simple accounting rule/equation given below.

Opening balance + Debit = Closing Balance + Credit

The capital spending will be equal to debit in fixed asset account. So now putting values given in the question in equation given above.

Debit (Capital Spending) = 400+50+730-600 = $ 580