The Pitter Corporation Purchased a Notebook Computer for $3,000 on December

question 81

Multiple Choice

The Pitter Corporation purchased a notebook computer for $3,000 on December 1. The useful life of the notebook computer is estimated to be 5 years. If financial statements are to be prepared on December 31, the company should make the following adjusting entry:

• A) debit Depreciation Expense, $50; credit Accumulated Depreciation, $50.
• B) debit Office Equipment, $50; credit Accumulated Depreciation, $50.
• C) debit Depreciation Expense, $2,400; credit Accumulated Depreciation, $2,400.
• D) debit Depreciation Expense, $600; credit Accumulated Depreciation, $600.

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Definitions:

Office Supplies

Consumable items and minor equipment used in an office setting, such as paper, pens, and staplers.

Petty Cash

Petty cash is a small amount of cash on hand used for covering minor, incidental expenses within a business.

Journal Entry

A record of a business transaction in the accounting journal that shows the accounts and amounts debited and credited.

Merchandise Inventory

Goods a business has acquired to sell to customers but has not yet sold.