The Jasmine Corporation purchased a notebook computer for $3,600 on December 1.The useful life of the notebook computer is estimated to be 3 years.If financial statements are to be prepared on December 31, the company should make the following adjusting entry:
A)debit Depreciation Expense, $1,200; credit Accumulated Depreciation-Equipment, $1,200.
B)debit Depreciation Expense, $100; credit Accumulated Depreciation-Equipment, $100.
C)debit Accumulated Depreciation-Equipment, $1,200; credit Depreciation Expense, $1,200.
D)debit Equipment, $100; credit Accumulated Depreciation-Equipment, $100.

Question

Quizplus · Accepted Answer

The correct choice is to debit Depreciation Expense and credit Accumulated Depreciation-Equipment for $100. This is because the annual depreciation is $3,600 / 3 years = $1,200 per year, and for one month (December), it is $1,200 / 12 months = $100.

The Jasmine Corporation Purchased a Notebook Computer for $3,600 on December