Question

Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

a. Depreciation for the current year includes​ Equipment, $2,200.

Answer 1

To record the annual depreciation of equipment, a journal entry is made that debits Depreciation Expense and credits Accumulated Depreciation by the amount of $2,200.

The question relates to the recording of an adjusting entry for depreciation on equipment.

The journal entry to record the depreciation on December 31 would involve debiting the Depreciation Expense account and crediting the Accumulated Depreciation account for the equipment.

Journal Entry:

Depreciation Expense: $2,200

(Debit)

Accumulated Depreciation - Equipment: $2,200

(Credit)

This entry increases the expense on the income statement, reflecting the use of the equipment during the period, and increases the accumulated depreciation on the balance sheet, which is a contra-asset account that reduces the book value of the equipment.