Question
The Ferron Company purchased equipment for $54,000 on December 1. It is estimated that annual depreciation on the computer will be $10,800. If financial statements
The Ferron Company purchased equipment for $54,000 on December 1. It is estimated that annual depreciation on the computer will be $10,800. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
| a. | debit Equipment, $59,000; credit Accumulated Depreciation, $59,000. | |
| b. | debit Depreciation Expense, $900; credit Accumulated Depreciation, $900. | |
| c. | debit Depreciation Expense, $43,200; credit Accumulated Depreciation, $43,200. | |
| d. | debit Depreciation Expense, $10,800; credit Accumulated Depreciation, $10,800. | |
| e. | None of the above. |
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