What is the journal entry to record depreciation expense?

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Question: What is the journal entry to record depreciation expense?

Options:

Correct Answer: Debit Depreciation Expense, Credit Accumulated Depreciation

Solution:

The correct entry is to debit Depreciation Expense to recognize the expense and credit Accumulated Depreciation to reduce the asset\'s book value.

What is the journal entry to record depreciation expense?

What is the journal entry to record depreciation expense?

Step 1: Identify the asset that is being depreciated (e.g., a piece of equipment).
Step 2: Determine the amount of depreciation expense for the period (e.g., $500).
Step 3: Create a journal entry to record the depreciation expense.
Step 4: Debit the Depreciation Expense account by the amount of depreciation (e.g., Debit Depreciation Expense $500).
Step 5: Credit the Accumulated Depreciation account by the same amount (e.g., Credit Accumulated Depreciation $500).
Step 6: This entry reduces the asset's book value and recognizes the expense on the income statement.

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