Famous frames company purchased office equipment on january

Question

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