BE3-4 ( LO 2 ), AP At the end of its first year, the trial balance of Wolowitz Company shows Equipment $ 30,000 and zero balances in Accumulated Depreciation Equipment and Depreciation Expense. Depreciation for the year is estimated to be $ 3,750. Prepare the annual adjusting entry for depreciation at December 31, post the adjustments to T - accounts, and indicate the balance sheet presentation of the equipment on December 31 Prepare adjusting entry for prepaid expense