Cali Company purchased equipment for $37,200 on November 1. It is estimated that annual depreciation on the equipment will be $7,440. If financial statements are to be prepared on December 31 and no adjusting journal entries have been recorded until December 31, which of the following adjusting entries should be recorded? 95 96 97 98 99 100 101 O DR: Depreciation Expense $1,240; CR: Accumulated Depreciation $1,240 O DR: Equipment $37,200; CR: Accumulated Depreciation $37,200 O DR: Depreciation Expense $7,440; CR: Accumulated Depreciation $7,440 O DR: Depreciation Expense $620; CR: Accumulated Depreciation $620 102 103 104 105 106 107 108 135