A company records an adjusting journal entry to record $10,000 depreciation expense. Which of the following describes the entry?
A) Debit Property Plant and Equipment and Credit Depreciation expense
B) Debit Depreciation expense and Credit Property Plant and Equipment
C) Debit Property Plant and Equipment and Credit Cash
D) Debit Depreciation expense and Credit Cash
E) Debit Net Income and Credit Property Plant and Equipment

Question

Quizplus · Accepted Answer

B) Debit Depreciation expense and Credit Accumulated Depreciation (or a similar account, but not directly Property, Plant, and Equipment). This reflects the expense on the income statement and the accumulated depreciation on the balance sheet, without reducing the original cost of the asset directly.

A Company Records an Adjusting Journal Entry to Record $10,000