Hercules Company Purchased a Computer for $3,600 on December 1

Multiple Choice

Hercules Company purchased a computer for $3,600 on December 1.It is estimated that annual depreciation on the computer will be $720.If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

A) Debit Depreciation Expense, $720; Credit Accumulated Depreciation, $720.
B) Debit Depreciation Expense, $60; Credit Accumulated Depreciation, $60.
C) Debit Depreciation Expense, $2,880; Credit Accumulated Depreciation, $2,880.
D) Debit Office Equipment, $3,600; Credit Accumulated Depreciation, $3,600.