Question

At the end of its first year, the trial balance of Nygaard Company shows Equipment 532,900 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,400. Prepare the adjusting entry for depreciation at December 31.Post the adjustments to T-accounts.Indicate the balance sheet presentation of the equipment at December 31.

Answer 1

Debit: Depreciation Equipment Expense: 4.400

Credit: Accumulated Depreciation Equipent: 4.400

Step-by-step explanation:

As were never register any entry for Drepreciaton during the year, we must register the total ammount of the year.

The normal balance for the expense account is an expense and for the accumulated depreciation is a credit.

Lets go to see the T accounts:

EQUIPMENT

DEBIT CREDIT

532 900,00

Accumulated Depreciation

DEBIT CREDIT

4.400

Expense Depreciacion

DEBIT CREDIT

4.400

BALANCE SHEET PRESENTATION:

ASSETS

FIXED ASSETS

EQUIPMENT 532.000

Accumulated Depreciation -4.400

NET FIXED ASSETS 528.500