In January a company purchased equipment with a cost of $36,000. The company determined that $100 represents the cost of equipment use each month. What is the required adjusting journal entry which should be made at the end of each month?

Answer

		Debit depreciation expense $100; Credit equipment $100.
		Debit depreciation expense $100; Credit cash $100.
		Debit depreciation expense $100; Credit accumulated depreciation $100.
		Debit equipment $100; Credit depreciation expense $100.