Question

The appropriate journal entry to record equipment depreciation expense would consist of a debit to Depreciation Expense and a credit to which of the following accounts:

a. Accumulated Depreciation
b. Equipment
c. Depreciation Reserve
d. Retained Earnings

Answer 1

The correct journal entry to record equipment depreciation expense is a debit to Depreciation Expense and a credit to Accumulated Depreciation.

Step-by-step explanation:

The appropriate journal entry to record equipment depreciation expense would consist of a debit to Depreciation Expense and a credit to Accumulated Depreciation.

The credit to Accumulated Depreciation increases the total amount of depreciation that has been recorded for the equipment over time, which is a contra asset account that reduces the equipment's book value on the balance sheet.

This journal entry does not affect the Equipment account directly nor does it impact Retained Earnings immediately, as Retained Earnings is impacted when net income, which includes the effect of depreciation expense, is closed into this account at the end of the fiscal period.

The appropriate journal entry to record equipment depreciation expense would consist of a debit to Depreciation Expense and a credit to Accumulated Depreciation.