A Business Acquires Equipment for $140 000 on 1 July

A business acquires equipment for $140 000 on 1 July 2013. The equipment depreciation will be $20 000 each year for the seven years of the asset's expected life. The business records depreciation once a year on 30 June. Which of the following is the adjusting entry required on 30 June 2014?

A) A debit of $20 000 to Depreciation expense and a credit of $20 000 to Equipment.
B) A debit of $20 000 to Depreciation expense and a credit of $20 000 to Accumulated depreciation.
C) A debit of $140 000 to Equipment and a credit of $140 000 to Cash.
D) A debit of $140 000 to Depreciation expense and a credit of $140 000 to Accumulated depreciation.