Gibson Corporation manufactures model airplanes. The company purchased for $129,000 automated production equipment that can make the model parts. The equipment has a $19,000 salvage value and a 10-year useful life.

Required

1. Assuming that the equipment was purchased on January 1, record in T-accounts the adjusting entry that the company would make on December 31 to record depreciation on equipment.

   Accumulated Depreciation					Manufacturing Overhead
   			adj.		adj.