Juliet Dance Academy estimated depreciation on its building at $400. The adjusting entry for depreciation of the building would include
A) a debit to Accumulated Depreciation for $400.
B) a debit to Depreciation Expense for $400.
C) a credit to Building for $400.
D) a credit to Depreciation Expense for $400.

Question

Quizplus · Accepted Answer

The adjusting entry for depreciation of the building would include a debit to Depreciation Expense for $400 to record the expense and reduce the net income, as well as a credit to Accumulated Depreciation for $400 to show the cumulative amount of depreciation taken on the building over time. The other options are not correct because there is no credit to Building or Depreciation Expense for the full amount of the estimated depreciation.

Juliet Dance Academy Estimated Depreciation on Its Building at $400