Hercules Company purchased a computer for $4,800 on December 1. It is estimated that annual depreciation on the computer will be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
Hercules Company purchased a computer for $4,800 on December 1. It is estimated that annual depreciation on the computer will be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Hercules Company purchased a computer for $4,800 on December 1. It is estimated that annual depreciation on the computer will
be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
Debit Depreciation Expense, $960; Credit Accumulated Depreciation, $960.
Debit Depreciation Expense, $80; Credit Accumulated Depreciation, $80.
Debit Depreciation Expense, $3,840; Credit Accumulated Depreciation, $3,840.
Debit Office Equipment, $4,800; Credit Accumulated Depreciation, $4,800.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc7e89a8-81ae-4f17-9af6-c27998e22fef%2F57342d6e-ff99-46ec-8620-9916d3ed283f%2F4z8x3fe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hercules Company purchased a computer for $4,800 on December 1. It is estimated that annual depreciation on the computer will
be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
Debit Depreciation Expense, $960; Credit Accumulated Depreciation, $960.
Debit Depreciation Expense, $80; Credit Accumulated Depreciation, $80.
Debit Depreciation Expense, $3,840; Credit Accumulated Depreciation, $3,840.
Debit Office Equipment, $4,800; Credit Accumulated Depreciation, $4,800.
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