Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
If the estimated depreciation for office equipment were $400,the adjusting entry would contain a

Question

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
 If the estimated depreciation for office equipment were $400,the adjusting entry would contain a

Quizplus · Accepted Answer

The adjusting entry for estimated depreciation on office equipment would involve crediting the Accumulated Depreciation, Office Equipment account which is a contra-account to Office Equipment as per generally accepted accounting principles. This would result in a decrease in the net book value of the equipment. The correct entry would be a credit to Accumulated Depreciation, Office Equipment for $400.

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