Zuhoor Muscat Company purchased an equipment for RO 5,400. It depreciates this equipment at the rate of RO 1,800 per year. The necessary adjusting entry to be prepared at the end of one month will be: a. Debit to Depreciation expense and credit to accumulated depreciation for RO 1,800. o b. None of the options are correct. OC. Debit to Equipment expense and credit to Depreciation for RO 3,600. Od. Debit to Depreciation expense and credit to accumulated depreciation for RO 150. e. Debit to Equipment and credit to Cash for RO 5,400.

Zuhoor Muscat Company purchased an equipment for RO 5,400. It depreciates this equipment at the rate of RO 1,800 per year. The necessary adjusting entry to be prepared at the end of one month will be: a. Debit to Depreciation expense and credit to accumulated depreciation for RO 1,800. o b. None of the options are correct. OC. Debit to Equipment expense and credit to Depreciation for RO 3,600. Od. Debit to Depreciation expense and credit to accumulated depreciation for RO 150. e. Debit to Equipment and credit to Cash for RO 5,400.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.23E: Adjustment for depreciation The estimated amount of depredation on equipment for the current year is...

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Adjustment for depreciation The estimated amount of depredation on equipment for the current year is $133,000. a. How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b. If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?
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