The Delivery Equipment Account in the Ledger of a Co $\quad\quad\text { Debit } \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text { Credit }$

Short Answer

The Delivery Equipment account in the ledger of A Co has a balance of $17 600 which is the cost of two 2^nd hand trucks purchased on 1 January 2011.The Accumulated Depreciation Delivery Equipment account has a balance on 31 December 2012 of $8000,before adjusting entries.No additional delivery trucks have been acquired or sold.The residual value of each truck is estimated to be $800 and the straight-line depreciation method is used.The necessary adjusting entry to record annual depreciation on 31 December 2013 is: $\quad\quad\text { Debit } \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text { Credit }$
a. $\text { Depreciation Exp } \quad\quad \$ 8000 \quad\text { Delivery Equipment } \quad \$ 8000$
b. $\text { Accumulated Deprecn } \$ 4000\quad \text { Delivery Equipment } \quad \$ 4000$
c. $\text { Depreciation Exp } \quad\quad \$ 8000\quad \text { Cash at Bank } \quad\quad\quad\quad \$ 8000$
d. $\text { Depreciation Exp } \quad\quad \$ 4000\quad \text { Accumulated Deprecn } \quad \$ 4000$