Question

A new accountant working for Ayayai Corp. records $750 Depreciation Expense on store equipment as follows:

The effect of this entry is to:

A. overstate the book value of the depreciable assets at December 31.

B. adjust the accounts to their proper amounts on December 31.

C. understate the book value of the depreciable assets as of December 31.

D. understate total assets on the balance sheet as of December 31.

 

 

Dr.

 

Cr.

 

Depreciation Expense………………………….

773

 

 

 

        Cash……………………………………….

 

 

773