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.