Be4-5 at the end of its first year, the trial balance of rayburn company shows equipment $22,000 and zero balances in accumulated depreciation—equipment and depreciation expense. depreciation for the year is estimated to be $2,750. prepare the annual adjusting entry for depreciation at december 31, post the adjustments to t-accounts, and indicate the balance sheet presentation of the equipment at december 31.

Please see the answer below:

Explanation:

Debit: Depreciation Expense         $2,750

Credit: Accumulated Depreciation           $2,750

To record adjusting entry for Depreciation Expense of Equipment.

Balance Sheet as of December 31

Fixed Assets:                                                 $               $  

Equipment                                                  22,000              

Less: Accumulated Depreciation               (2,750)          

Net Cost of Equipment as of Dec 31                           19,250

answer; the correct answer is (direct foreign investment);

engine assembler, survey reasearcher, auditor