A company has $25,000 of depreciation on plant assets and paid $12,000 for repairs also to plant assets. Which of the following journal entries would be required?

Question

Quizplus · Accepted Answer

Depreciation is recorded with a debit to Depreciation Expense and a credit to Accumulated Depreciation. Repairs are recorded with a debit to Repairs Expense and a credit to Cash or Accounts Payable. Therefore, the journal entry required would be:
Depreciation Expense      $25,000
    Accumulated Depreciation    $25,000 
Repairs Expense         $12,000
    Cash (or Accounts Payable)     $12,000

Option B, 11ecb4af_98b6_8ebf_8164_e31dd5a11b6e_TB34225555_11, is the correct journal entry that includes both of these transactions.

A Company Has $25,000 of Depreciation on Plant Assets and Paid