Question

The adjusting entry to record depreciation of equipment is

Select one:

a. debit Accumulated Depreciation; credit Depreciation Expense.

b. debit Depreciation Expense; credit Accumulated Depreciation.

c. debit Equipment; credit Accumulated Depreciation.

d. debit Depreciation Expense; credit Depreciation Payable.

e. debit Accumulated Depreciation; credit Equipment.

Answer 1

Answer: b. debit Depreciation Expense; credit Accumulated Depreciation.

Explanation:

Adjusting entry for depreciation of equipment

Date	Account title and Explanation	Debit	Credit
	Depreciation expense	Amount
	Accumulated depreciation-Equipment		Amount
	[To record depreciation expense on equipment]

Thus,

a. debit Accumulated Depreciation; credit Depreciation Expense is incorrect.

b. debit Depreciation Expense; credit Accumulated Depreciation is correct

c. debit Equipment; credit Accumulated Depreciation is incorrect

d. debit Depreciation Expense; credit Depreciation Payable is incorrect.

e. debit Accumulated Depreciation; credit Equipment is incorrect.