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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Transcribed Image Text: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.
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