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Chapter 3: Q.12RQ (page 157)

Question :In the recording of depreciation expense, which account is credited?

Short Answer

Expert verified

Answer

The accumulated depreciation account is credited.

Step by step solution

Explanation of Depreciation Expense

It is the process of allocating the cost of fixed assets over the asset's useful life. It is reported in the income statement as an expense

Journal Entry for Depreciation Expense

Depreciation expense is recorded by debiting depreciation expense and crediting accumulated depreciation expense.

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Most popular questions from this chapter

Identify the impact on the income statement and balance sheet if adjusting entries for the following situations were not recorded. a. Office Supplies used, $800. b . A c c r u e d s e r v i c e r e v e n u e,$ 4,000. c. Depreciation on building, $3, 500. d . P r e p a i d I n s u r a n c e e x p i r e d,$ 650. e. Accrued salaries expense, $2, 750. f . S e r v i c e r e v e n u e t h a t w a s c o l l e c t e d i n a d v a n c e h a s n o w b e e n e a r n e d,$ 130

Resort Travel borrowed $33, 000 o n S e p t e m b e r 1, 2018, b y s i g n i n g a o n e - y e a r n o t e p a y a b l e t o S t a t e O n e B a n k . R e s o r t^{'} s i n t e r e s t e x p e n s e o n t h e n o t e p a y a b l e f o r t h e r e m a i n d e r o f t h e f i s c a l y e a r (S e p t e m b e r t h r o u g h N o v e m b e r) i s$ 355. Requirements 1. Record the adjusting entry to accrue interest expense at November 30, 2018. 2. Post the adjusting entry to the T-accounts of the two accounts affected by the adjustment.

Which accounting concept or principle requires companies to divide their activities into small time segments such as months, quarters, or years?

On September 1, Big Fan of Toledo prepaid six months of rent, $3,300. Requirements 1. Record the journal entry for the September 1 payment. 2. Record the adjusting entry required at September 30. 3. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances at September 30. (Ignore the Cash account.)

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Question :In the recording of depreciation expense, which account is credited?

Short Answer

Step by step solution

Explanation of Depreciation Expense

Journal Entry for Depreciation Expense

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Most popular questions from this chapter

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