Business

Jaylin Acosta

19 April, 01:56

On September 1, Crestview Company purchased equipment for $25,000. The equipment's estimated salvage value is $2,500. The machine will be depreciated using straight-line depreciation and a five year life. 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 a:

A) $1,500 debit to Depreciation Expense and a $1,500 credit to Equipment.

B) $4,500 debit to Depreciation Expense and a $4,500 credit to Equipment.

C) $4,500 debit to Depreciation Expense and a $4,500 credit to Accumulated Depreciation.

D) $4,500 debit to Depreciation Expense and a $4,500 credit to Cash.

E) $1,500 debit to Depreciation Expense and a $1,500 credit to Accumulated Depreciation.