Question

Depreciation on a company's equipment for the year is $6,000. The adjusting entry for depreciation is recorded as?

1) Debit Accumulated Depreciation, Credit Depreciation Expense
2) Debit Depreciation Expense, Credit Accumulated Depreciation
3) Debit Depreciation Expense, Credit Equipment
4) Debit Equipment, Credit Depreciation Expense

Answer 1

The adjusting entry for depreciation is Debit Accumulated Depreciation, Credit Depreciation Expense.

Step-by-step explanation:

The correct adjusting entry for depreciation is option 1) Debit Accumulated Depreciation, Credit Depreciation Expense.

1. Debit Accumulated Depreciation: Accumulated Depreciation is a contra asset account that represents the total amount of depreciation recorded over the years on a company's assets. By debiting this account, we increase the accumulated depreciation for the equipment.
2. Credit Depreciation Expense: Depreciation Expense is an expense account that represents the periodic allocation of an asset's cost over its useful life. By crediting this account, we recognize the depreciation expense for the year.

Therefore, the adjusting entry for depreciation is: Debit Accumulated Depreciation, Credit Depreciation Expense.