Question
Holman Company owns equipment with an original cost of $97,160 and an estimated salvage value of $6,080 that is being depreciated at $15,180 per year
Holman Company owns equipment with an original cost of $97,160 and an estimated salvage value of $6,080 that is being depreciated at $15,180 per year using the straight-line depreciation method, and only prepares adjustments at year-end. The adjusting entry needed to record annual depreciation is:
Debit Depreciation Expense, $15,180; credit Equipment, $15,180.
Debit Equipment, $15,180; credit Accumulated Depreciation, $15,180.
Debit Depreciation Expense, $9,100; credit Accumulated Depreciation, $9,100.
Debit Depreciation Expense, $9,100; credit Equipment, $9,100.
Debit Depreciation Expense, $15,180; credit Accumulated Depreciation, $15,180.
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