$60,000 worth of restaurant equipment,which was estimated to last five years,has now been used for one month.What is the adjusting journal entry required at the end of the month?

Question

Quizplus · Accepted Answer

The adjusting entry needed is to recognize depreciation expense for the month, and to record this expense, we need to debit depreciation expense and credit accumulated depreciation. The amount to be recorded is $1,000, which is calculated as ($60,000/5)/12 months = $1,000/month. Therefore, choice C is the correct answer.

$60,000 Worth of Restaurant Equipment,which Was Estimated to Last Five