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:

Physical Capital

Physical assets including facilities, tools, and machines utilized for manufacturing products and providing services.

Structures

The arrangement or organization of interconnected elements, which can pertain to physical buildings or systemic frameworks within a context.

Equipment

Tools or machinery necessary for a particular activity or purpose.

Nonrenewable Resource

A resource that cannot be replenished at the same rate at which it is consumed, such as fossil fuels.