Depreciation on the company's equipment for 2014 is $24,000.The company prepares and records adjusting entries on a monthly basis.How would the company record the related adjusting entry on December 31,2014?

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The adjusting entry for depreciation on December 31, 2014 would be to debit the Depreciation Expense account for $2,000 and credit the Accumulated Depreciation - Equipment account for $2,000. This entry records the amount of depreciation expense that has accumulated from the beginning of the year to the end of the year, and reduces the carrying value of the equipment on the balance sheet. Option A is incorrect because cash is not involved in this transaction. Option B is incorrect because it would increase the carrying value of the equipment on the balance sheet, which is not correct. Option D is incorrect because it records the total amount of depreciation expense for the year, instead of just the portion that has accumulated by the end of the year. Option E is incorrect for the same reason as option B.

Depreciation on the Company's Equipment for 2014 Is $24,000