On a worksheet, the adjusting entry to account for depreciation of equipment consists of:
A)a debit to Accumulated Depreciation and a credit to Equipment.
B)a debit to Depreciation Expense and a credit to Accumulated Depreciation.
C)a debit to Depreciation Expense and a credit to Equipment.
D)a debit to Accumulated Depreciation and a credit to Depreciation Expense.

Question

Quizplus · Accepted Answer

The adjusting entry to account for depreciation of equipment involves recognizing the expense and reducing the value of the asset. Depreciation Expense is debited to record the expense, and Accumulated Depreciation is credited to reduce the value of the Equipment. Choice B correctly reflects this entry.

On a Worksheet, the Adjusting Entry to Account for Depreciation