Hercules Company Purchased a Computer for $4,800 on December 1

Multiple Choice

Hercules Company purchased a computer for $4,800 on December 1. It is estimated that annual depreciation on the computer will be $960. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

A) Debit Depreciation Expense, $960; Credit Accumulated Depreciation, $960.
B) Debit Depreciation Expense, $80; Credit Accumulated Depreciation, $80.
C) Debit Depreciation Expense, $3,840; Credit Accumulated Depreciation, $3,840.
D) Debit Office Equipment, $4,800; Credit Accumulated Depreciation, $4,800.