If a company purchases equipment costing $10,000 Jan 1 and the deprecation on this equipment is estimated to be $1,000 a year. What entry needs to be made Dec 31st for depreciation? Debit to Depreciation Expense $9,000, credit to Accumulated Depreciation $9,000 No entry is made, since depreciation is only recorded when the equipment is sold. Equity decreases $10,500 and liabilities increase $10,500 Debit to Depreciation Expense $1,000, credit to Accumulated Depreciation $1,000 Debic to Depreciation Expense $10,000, credit to accumulated Depreciation $10,000