Sophie's Bridal Shop bought a computer worth $2,150 with an expected life of 3 years and a residual value of $500. What is the adjusting journal entry after the first year?

Question

Quizplus · Accepted Answer

The adjusting entry after the first year should be a depreciation expense of ($2,150-$500)/3 = $550 and the corresponding increase in accumulated depreciation. Therefore, the correct choice is C, where depreciation expense is debited and accumulated depreciation is credited.

Sophie's Bridal Shop Bought a Computer Worth $2,150 with an Expected