A business purchased equipment for $145,000 on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.) A) Debit $145,000 to Equipment, and credit $145,000 to Cash. B) Debit $145,000 to Depreciation Expense-Equipment, and credit $145,000 to Accumulated Depreciation-Equipment. C) Debit $29,000 to Depreciation Expense-Equipment, and credit $29,000 to Accumulated Depreciation-Equipment. D) Debit $29,000 to Depreciation Expense, and credit $29,000 to Equipment.

A business purchased equipment for $145,000 on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.) A) Debit $145,000 to Equipment, and credit $145,000 to Cash. B) Debit $145,000 to Depreciation Expense-Equipment, and credit $145,000 to Accumulated Depreciation-Equipment. C) Debit $29,000 to Depreciation Expense-Equipment, and credit $29,000 to Accumulated Depreciation-Equipment. D) Debit $29,000 to Depreciation Expense, and credit $29,000 to Equipment.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...

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