Meat Puppets Company Purchased Equipment for $7,200 on December 1

Meat Puppets Company purchased equipment for $7,200 on December 1. It is estimated that annual depreciation on the equipment will be $1,800. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

A) Debit Depreciation Expense, $1,800; Credit Accumulated Depreciation, $1,800.
B) Debit Depreciation Expense, $150; Credit Accumulated Depreciation, $150.
C) Debit Depreciation Expense, $5,400; Credit Accumulated Depreciation, $5,400.
D) Debit Equipment, $7,200; Credit Accumulated Depreciation, $7,200.