Question

It is determined that a computer's depreciation expense for the year is $3,500. The journal entry to record this will be:

A. debit Accumulated Depreciation - computer $3,500; credit Cash $3,500.

B. debit Depreciation Expense - computer $3,500; credit Cash $3,500.

C. debit Cash $3,500; credit Depreciation Expense - computer $3,500.

D. debit Depreciation Expense - computer $3,500; credit Accumulated Depreciation, $3,500.

Answer 1

The correct journal entry for recording the depreciation expense of a computer is to debit Depreciation Expense and credit Accumulated Depreciation for $3,500.

Step-by-step explanation:

The correct journal entry to record the depreciation expense of a computer is: debit Depreciation Expense - computer $3,500; credit Accumulated Depreciation - computer $3,500. This entry reflects the allocation of the cost of the computer over its useful life, which is recognized as an expense each year. By debiting the Depreciation Expense account, you are increasing the expense, which reduces the net income on the income statement. By crediting the Accumulated Depreciation account, you are increasing the total depreciation taken on the asset to date, which is a contra asset account that reduces the book value of the asset on the balance sheet.