On August 1 the Darius Co. purchased a photocopy machine for $8,000. The estimated annual depreciation on the machine is $1,680. If the company prepares annual financial statements on December 31, the appropriate adjusting journal entry to make on December 31 of the first year would be a:
a) $700 debit to Depreciation Expense and a $700 credit to Accumulated Depreciation.
b) $140 debit to Depreciation Expense and a $140 credit to Accumulated Depreciation.
c) $700 debit to Depreciation Expense and a $140 credit to Equipment.
d) $1,680 debit to Depreciation Expense and a $1,680 credit to Accumulated Depreciation.

a) $700 debit to Depreciation Expense and a $700 credit to Accumulated Depreciation.

Explanation:

The adjusting journal entry is shown below:

On December 31

Depreciation expense $700

         To Accumulated depreciation - Machine A/c $700

(Being the depreciation expense is recorded)

The computation is shown below:

= Estimated annual depreciation on the machine × number of months ÷ total number of months in a year

= $1,680 × 5 months ÷ 12 months

= $700

answer; im, thinking it should be (7yrs)///plz check first.good luck

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.