Eli Company purchases equipment for $7,200 on November 1, 2020. It is estimated
that annual depreciation on the equipment will be $1,200. Assuming adjusting
entries are only prepared at year-end, the company should make the following
adjusting entry:
Debit Accumulated Depreciation, $200; Credit Depreciation Expense, $200.
Debit Depreciation Expense, $200; Credit Accumulated Depreciation, $200.
Debit Depreciation Expense, $600; Credit Equipment, $600.
Debit Depreciation Expense, $1,200; Credit Accumulated Depreciation, $1,200.