The Harris Company Purchased Equipment For $9,000 On December 1

The correct answer is B), as the Adjusting Entry (debit Depreciation Expense, $150; credit Accumulated Depreciation, $150) for the period of one month (December), in which accounting period is ended, is recorded and depreciation per month is $150 (1800/12).

If equipment purchased on January 1, then we debit depreciation expense account with $1800 and credit accumulated depreciation account with $1800.

The other options (A, C and D) are not correct.

Depreciation for the year is computed by applying different Depreciation Methods. Depreciation for the month is added to the following month and it will continue upto the Useful Life of Fixed Assets (Equipment, Plant and Machinery, Furniture & Fixtures, etc.). Depreciation is recorded in Income Statement and it is considered as non cash item as there is no cash involvement in recording the entry. 

Accumulated depreciation is the total of depreciation charged for the different accounting period. It is deducted from the relevant Non Current Assets on balance sheet.