Which of the following entries records the depreciation on equipment for the fiscal year-end adjustment?
A)Debit Depreciation; credit Depreciation Expense
B)Debit Depreciation Expense; credit Equipment
C)Debit Depreciation Expense; credit Accumulated Depreciation
D)Debit Accumulated Depreciation; credit Depreciation Expense

Question

Quizplus · Accepted Answer

Depreciation expense needs to be recorded as an expense, which is why it should be debited to Depreciation Expense account. The Accumulated Depreciation account, on the other hand, is a contra asset account, which is credited to reflect that the value of the asset has decreased. Hence, the correct journal entry is Debit Depreciation Expense and Credit Accumulated Depreciation.

Which of the Following Entries Records the Depreciation on Equipment