Sebastian Company purchased equipment for $12,800 on January 1 . It is estimated that annual depreciation on the equipment will be $2,556. If financial statements are to be prepared on January 31 , the company should make the following adjusting entry: DR: Depreciation Expense $2,556; CR: Accumulated Depreciation - Equipment $2,556 DR: Equipment $12,800; CR: Cash $12,800 DR: Depreciation Expense \$213; CR: Accumulated Depreciation - Equipment $213 DR: Accumulated Depreciation - Equipment \$2,556; CR: Depreciation Expense $2,556