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Depreciation on equipment for the year is $6,300. (a) Record the journal entry if the company prepares adjustments once a year. (b) Record the journal entry if the company prepares adjustments on a monthly basis.

User Jlandercy
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1 Answer

3 votes

Step-by-step explanation:

The journal entries are shown below:

a.

Depreciation Expense A/c Dr $6,300

To Accumulated Depreciation - Equipment A/c $6,300

(Being depreciation expense is recorded)

b.

Depreciation Expense A/c Dr $525 ($6,300 ÷ 12 months)

To Accumulated Depreciation - Equipment A/c $525

(Being the monthly depreciation expense is recorded)

User Jason Allen
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