The office equipment depreciates at a rate of $1,000 per year.The adjusting entry would include

Question

Quizplus · Accepted Answer

The adjusting entry for the depreciation of the office equipment would include a credit to accumulated depreciation for $1,000. This is because accumulated depreciation is a contra asset account, which means it reduces the value of the asset (in this case, office equipment) on the balance sheet. By crediting accumulated depreciation, we are recognizing the decrease in value of the asset for the current period.

The Office Equipment Depreciates at a Rate of $1,000 Per