Question

Jennifer has a truck that she uses to deliver goods sold by her business. At the end of the year, Jennifer will record $6,000 for depreciation of the truck. What two types of accounts will be affected by this adjusting entry?

A. An asset account and an expense account
B. A liability account and an owner's equity account
C. An expense account and a liability account
D. A payable account and an asset account Save and Continue

Answer 1

A. An asset account and an expense account

Step-by-step explanation:

In order to record the depreciation of $6,000 for the truck, the following journal entry is to be passed

Depreciation expense Dr $6,000

To Accumulated depreciation - truck $6,000

(Being the depreciation expense is recorded)

Here the depreciation expense is to be debited as it increased the assets while on the other the accumulated depreciation is to be credited as it decreased the asset

Therefore the option a is correct