Question 10
2.5 pts
On August 1, a company purchased equipment for $16,000. The equipment's
estimated salvage value is $1,000. The machine will be depreciated using straight-line
depreciation and a five year life. If the company prepares annual financial statements
on December 31, the appropriate adjusting journal entry to make on December 31 of
the first year would be a
$3,000 debit to Equipment and a $3,000 credit to Cash.
$3,000 debit to Depreciation Expense and a $3,000 credit to Accumulated Depreciation.
$1,250 debit to Accumulated Depreciation and a $1,250 credit to Depreciation Expense.
$3,000 debit to Accumulated Depreciation and a $3,000 credit to Depreciation Expense.
$1,250 debit to Depreciation Expense and a $1,250 credit to Accumulated Depreciation.
