The correct entry to record depreciation expense is to debit Depreciation Expense and credit Accumulated Depreciation.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the journal entry to record the depreciation expense for the year?
Solution: The correct entry to record depreciation expense is to debit Depreciation Expense and credit Accumulated Depreciation.
Steps: 5
Step 1: Identify the asset that is being depreciated. This could be equipment, vehicles, or buildings.
Step 2: Determine the amount of depreciation expense for the year. This is usually calculated based on the asset's useful life and cost.
Step 3: Prepare the journal entry. You will need to make two entries: one for the expense and one for the accumulated depreciation.
Step 4: Debit the Depreciation Expense account. This increases the expense on the income statement.
Step 5: Credit the Accumulated Depreciation account. This increases the contra asset account on the balance sheet, reducing the book value of the asset.
