Accounting system entry

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Famous Frames Company purchased office equipment on January 1,2007 for $10,000. Its annual depreciation was computed as $1,000.To record the depreciation for 2007, the accounting system entry should be which of the following?

  1. increase both Depreciation Expense and Accumulated Depreciation by $1,000
  2. increase Depreciation Expense and decrease Equipment,both by $1,000
  3. increase Depreciation Expense and decrease Accumulated Depreciation, both by $1,000
  4. decrease both Depreciation Expense and Accumulated Depreciation by $1,000

Reference no: EM13259438

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