COLLEGE ACCOUNTING
COLLEGE ACCOUNTING
13th Edition
ISBN: 9780357531846
Author: Scott
Publisher: CENGAGE L
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Chapter 4, Problem 7QY

Accumulated Depreciation, Equipment is reported

  1. a. on the income statement as an expense.
  2. b. on the balance sheet as an addition to total assets.
  3. c. on the income statement as a revenue.
  4. d. on the balance sheet as a subtraction from the related asset account.
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A business purchased equipment for $165,000 on January 1, 2021. 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 2021? (Assume the residual value of the acquired equipment to be zero.) A) Debit $165,000 to Equipment, and credit $145,000 to Cash. B) Debit $33,000 to Depreciation Expense-Equipment, and credit $33,000 to Accumulated Depreciation-Equipment. C) Debit $165,000 to Depreciation Expense-Equipment, and credit $145,000 to Accumulated Depreciation-Equipment. D) Debit $33,000 to Depreciation Expense, and credit $33,000 to Equipment. Correct option
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COLLEGE ACCOUNTING

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