Question

Adjustment for Depreciation The estimated amount of depreciation on equipment for the current year is $1,970. Journalize the adjusting entry to record the depreciation. If an amount box does not require an entry, leave it blank. Accounts Payable Accumulated Depreciation Equipment Depreciation Expense Depreciation Payable Equipment Expense Equipment Equipment Payable

Answer 1

Adjustment for Depreciation:

Journalizing the adjustment entry to record the depreciation:

- It was given that the estimated current year depreciation is $1970

- Depreciation is an charge on asset over the usage of asset beacause of its wear and tear during the life of asset.

- Depreciation is an expense and should be debited following the principle, 'All expenses and losses should be debited'.

- Correspondingly, Accumulated Depreciation account has to be credited, which is a contra asset account maintained to accumulate the depreciation charge on particular asset.

So, The journal entry is as follows:

General Journal	Debit	Credit
Depreciation expense	$1970
Accumulated Depreciation		$1970
(To record the depreciation)

______×_______

Do vote, All the best,

Keep Learning