yl & Moving to another question will save this ??Question 14 of 25 ?? Question 1

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yl & Moving to another question will save this ??Question 14 of 25 ?? Question 14 20 points Save Anwer heFerron Company purchased equipment fr $54,000 on December 1. It ? estimated that annual dep ecat n on the compter will be $10,800. If finn cial state ents are to be prepared oo December 31, the company should make the following adjveting entry O a. debit Equipment, $59,000, credit Accumulated Depreciation, $59,000 $900 d.debit Depreciation Experse, $10,800, credit Accumalated Depreciation, $10,800. e.None of the abore Moving to another question will save this response RI Question 14 of 25 6:37 PM rP ^ 6/11/2018

Explanation / Answer

b.debit Depreciation Expense, $900,credit Accumulated Depreciation, $ 900

Working:

In year end there is only one month. So annual depreciation would be restricted to one month. Annual Depreciation $       10,800 Depreciation for one month $       10,800 x 1/12 $        900 Adjusting entry: Account titles and explanation Debit Credit Depreciation Expenses $        900 Accumulated Depreciation -Equipment $        900

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