A new accountant working for Brady Company records $700 Depreciation Expense on store equipment as follows:
Dr. Depreciation Expense ........................... 700
Cr. Cash ........................... 700
The effect of this entry is to
O overstate the book value of the depreciable assets at December 31.
O understate the book value of the depreciable assets as of December 31.
O understate total assets on the balance sheet as of December 31.
O adjust the accounts to their proper amounts on December 31.