On January 1, 2021, Leardon Inc.purchased equipment for $25,000.The company is depreciating the equipment at the rate of $1,000 per month.At January 31, 2022, the balance in Accumulated Depreciation is:
A)$1,000 debit.
B)$12,000 credit.
C)$13,000 credit.
D)$62,000 debit.

Question

Quizplus · Accepted Answer

The equipment is depreciated at $1,000 per month. From January 1, 2021, to January 31, 2022, there are 13 months. Therefore, the accumulated depreciation is 13 months x $1,000 = $13,000 credit.