Multiple Choice
The Delivery Equipment account in the ledger of A Co has a balance of $17 600 which is the cost of two 2nd hand trucks purchased on 1 January 2015. The Accumulated Depreciation Delivery Equipment account has a balance on 31 December 2016 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. What is the necessary adjusting entry to record annual depreciation on 31 December 2017?
Debit Credit
A) Depreciation exp. $8000 Delivery equipment $8000
B) Accumulated depr. $4000 Delivery equipment $4000
C) Depreciation exp. $8000 Cash at bank $8000
D) Depreciation exp. $4000 Accumulated depr. $4000
Correct Answer:
Verified
Correct Answer:
Verified
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