Cowley Company just completed its first year of operations. The December 31 equipment account has a balance of $10,000. 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 $2,000. Prepare the required adjustment to record the yearly depreciation for equipment. Note: Use negative signs with answers, when appropriate.

Balance SheetIncome StatementStockholders'Assets=Liabilities+EquityRevenues-Expenses=Net Income