Evans Golf Academy estimated depreciation on its building at $300.The adjusting entry for depreciation of the building would include:
A)a debit to Accumulated Depreciation for $300.
B)a debit to Depreciation Expense for $300.
C)a credit to Building for $300.
D)a credit to Depreciation Expense for $300.

Question

Quizplus · Accepted Answer

The adjusting entry for depreciation of the building requires a debit to Depreciation Expense for $300, which is an expense account, to reflect the decrease in the value of the asset. There should also be a credit to Accumulated Depreciation for $300, which is a contra-asset account, to track the total amount of depreciation that has been charged against the building over time. A credit to Building for $300 would be incorrect, as it implies an increase in value, and a credit to Depreciation Expense for $300 would be incorrect, as it would have the opposite effect of what is needed for the entry.

Evans Golf Academy Estimated Depreciation on Its Building at $300