Bichon Company purchased equipment for $6720 on December 1. It is estimated that annual depreciation on the equipment will be $1680. If financial statements are to be prepared on December 31 the company should make the following adjusting entry:
A) Debit Depreciation Expense $1680; Credit Accumulated Depreciation $1680.
B) Debit Depreciation Expense $140; Credit Accumulated Depreciation $140.
C) Debit Depreciation Expense $5040; Credit Accumulated Depreciation $5040.
D) Debit Equipment $6720; Credit Accumulated Depreciation $7200.
Correct Answer:
Verified
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