The correct entry is to debit Depreciation Expense to recognize the expense and credit Accumulated Depreciation to reduce the asset's book value.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the journal entry to record depreciation expense?
Solution: The correct entry is to debit Depreciation Expense to recognize the expense and credit Accumulated Depreciation to reduce the asset's book value.
Steps: 6
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.
