A company depreciates its equipment $500 a year. The adjusting entry for December 31 is debit Depreciation Expense, $500 and credit Equipment, $500.

Name: A company depreciates its equipment $500 a year. The adjusting entry for December 31 is debit Depreciation Expense, $500 and credit Equipment, $500.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The correct adjusting entry is to debit Depreciation Expense and credit Accumulated Depreciation, not Equipment.

A Company Depreciates Its Equipment $500 a Year