The Jasmine Corporation purchased a notebook computer for $3,600 on December 1. The useful life of the notebook computer is estimated to be 3 years. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
A) debit Depreciation Expense, $1,200; credit Accumulated Depreciation-Equipment, $1,200.
B) debit Depreciation Expense, $100; credit Accumulated Depreciation-Equipment, $100.
C) debit Accumulated Depreciation-Equipment, $1,200; credit Depreciation Expense, $1,200.
D) debit Equipment, $100; credit Accumulated Depreciation-Equipment, $100.

Question

Quizplus · Accepted Answer

The depreciation for one month (December) is calculated as $3,600 / 36 months = $100. Therefore, the adjusting entry should reflect a $100 depreciation expense for December.

The Jasmine Corporation Purchased a Notebook Computer for $3,600 on December