Final answer:
To record the depreciation of equipment, journalize a debit to Depreciation Expense and a credit to Accumulated Depreciation for the amount of $66,290. This reflects the allocation of the cost of the asset over its useful life.
Step-by-step explanation:
The main answer to your question involves an accounting transaction known as an adjusting entry. When businesses need to account for the depreciation of their assets, they use an adjusting entry to allocate the cost of the assets over their useful lives. To record the depreciation of equipment, an accountant would make the following journal entry:Journal Entry to Record Depreciation: Debit: Depreciation Expense $66,290Credit: Accumulated Depreciation - Equipment $66,290 Explanation in more than 100 words:Depreciation Expense is an income statement account that reflects the cost of the wear and tear on the equipment for the current period. Accumulated Depreciation, on the other hand, is a contra asset account on the balance sheet that accumulates depreciation over time. When making this journal entry, the amount of $66,290 will be debited to the Depreciation Expense, showing it as an expense for the year, and credited to Accumulated Depreciation, which indicates the total amount of depreciation that has been accounted for since the asset was acquired.Conclusion: Recording depreciation helps companies systematically allocate the cost of their assets over the periods they benefit from their use. This entry reduces the value of the equipment on the balance sheet while recognizing the expense associated with using the equipment on the income statement.