Cowley Company just completed its first year of operations. The December $31$ equipment account has a

balance of $$25,000.$ There is no balance in the Accumulated Depreciation$-$Equipment account or in

the Depreciation Expense account.

The accountant estimates the yearly equipment depreciation to be $$5,000.$

Prepare the required adjustment to record the yearly depreciation for equipment.

Note: Use negative signs with answers, when appropriate.

Balance Sheet Income Statement

Stockholders'

Assets $=$ Liabilities $+$ Equity Revenues $-$ Expenses $=$ Net Income