Question

Indicate the Debits and Credits for the following:

Depreciation for the period was $100,000 of which $12,000 is related to the factory building and equipment while the remaining and $88,000 is related to the headquarters office building.

Answer 1

Debit: Depreciation expense 100000

Credit: Accumulated depreciation - Factory building & equipment 12000

Credit: Accumulated depreciation - Office building 88000

Step-by-step explanation:

The following double entry will be passed to record the given transaction in the question.

Depreciation expense 100000 Dr

Accumulated depreciation - Factory building & equipment 12000 Cr

Accumulated depreciation - Office building 88000 Cr

So we can tell from this entry that depreciation expense will be debited and the accumulated depreciation account for factory building and equipment and accumulated depreciation account for office building will be credited.