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What is the journal entry for recording depreciation expense on equipment?

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Question: What is the journal entry for recording depreciation expense on equipment?

Options:

  1. Debit Depreciation Expense, Credit Accumulated Depreciation
  2. Debit Accumulated Depreciation, Credit Depreciation Expense
  3. Debit Equipment, Credit Depreciation Expense
  4. Debit Depreciation Expense, Credit Equipment

Correct Answer: Debit Depreciation Expense, Credit Accumulated Depreciation

Solution: 

The correct entry is to debit Depreciation Expense and credit Accumulated Depreciation, reflecting the expense incurred and the reduction in asset value.

What is the journal entry for recording depreciation expense on equipment?

Practice Questions

Q1
What is the journal entry for recording depreciation expense on equipment?
  1. Debit Depreciation Expense, Credit Accumulated Depreciation
  2. Debit Accumulated Depreciation, Credit Depreciation Expense
  3. Debit Equipment, Credit Depreciation Expense
  4. Debit Depreciation Expense, Credit Equipment

Questions & Step-by-Step Solutions

What is the journal entry for recording depreciation expense on equipment?
  • Step 1: Identify the equipment that is being depreciated.
  • Step 2: Determine the amount of depreciation expense for the period.
  • Step 3: Prepare the journal entry by debiting the Depreciation Expense account for the amount calculated.
  • Step 4: Prepare the journal entry by crediting the Accumulated Depreciation account for the same amount.
  • Step 5: Review the journal entry to ensure it reflects the expense and reduction in asset value correctly.
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