Question 3 Which one of the following is not a justification for adjusting entries? Adjusting entries are necessary to bring the general ledger accounts in line with the budget. Adjusting entries are necessary to ensure that the revenue recognition principle is followed. Adjusting entries are necessary to enable financial statements to be in conformity with GAAP. Adjusting entries are necessary to ensure that the expense recognition principle is followed. On August 1a company purchased a photocopy machine for $9.000. The estimated annual depreciation on the machine is $3,000. If the company prepares annual financial statements on December 31, the appropriate adjusting journal entry to make on December 31 of the first year would be Debit depreciation expense $1,250 credit accumulated depreciation $1,250 Debit depreciation expense $1.250: credit equipment $1.250 Debit depreciation expense $3,000, credit accumulated depreciation $3,000 Debit depreciation expense $700; credit accumulated depreciation $700