BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Which of the following is the adjusting entry for depreciation on Equipment?

  1. a. Debit Depreciation Expense, Equipment and credit Equipment
  2. b. Debit Equipment and credit Depreciation Expense, Equipment
  3. c. Debit Depreciation Expense, Equipment and credit Accumulated Depreciation, Equipment
  4. d. Debit Accumulated Depreciation, Equipment and credit Depreciation Expense, Equipment
  5. e. None of the above

To determine

Identify the adjusting entry for depreciation on equipment.

Answer

c. Debit Depreciation Expense, Equipment and credit Accumulated Depreciation, Equipment

Explanation

Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to update the income statement accounts (revenue and expenses) and balance sheet accounts (assets, liabilities, and stockholders’ equity) to maintain the records according to accrual basis principle.

Record the adjusting entry for depreciation on equipment.

Date Account Title and explanation

Debit

($)

Credit ($)
  Depreciation expenses, Equipment XXX  
  Accumulated depreciation, Equipment   XXX
  (To record the depreciation on equipment )    

Table (1)

  • Depreciation expense (expense) is a component of stockholders equity and it is increased. Therefore, debit the depreciation expenses.
  • Accumulated depreciation is a contra asset account and it is decreased. Therefore, credit the accumulated depreciation.
Conclusion

Therefore, from the above given explanation it is observed that Option c (Debit Depreciation Expense, Equipment and credit Accumulated Depreciation, Equipment) is the correct answer and other options a, b, d and e are incorrect answers.

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Explain why todays managerial accountant must have a cross-functional perspective.

Managerial Accounting: The Cornerstone of Business Decision-Making

Describe marketing uses of branding

MKTG 12:STUDENT ED.-TEXT

FUTURE VALUE OF AN ANNUITY Your client is 40 years old. She wants to begin saving for retirement with the first...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is an invoice?

Pkg Acc Infor Systems MS VISIO CD

Find all the answers to your study problems with bartleby.
Textbook solutions plus Q&A. Get As ASAP arrow_forward