Question

Creative Art Supplies has depreciation expense of $950.00 at the end of the fiscal year. What is the entry to journalize the depreciation expense?a. Debit Accumulated Depreciation $950.00; credit Depreciation Expense $950.00

b. Debit Depreciation Expense $950.00; credit Accumulated Depreciation $950.00
c. Debit Depreciation Expense $950.00; credit Equipment $950.00
d. Debit Equipment $950.00; credit Accumulated Depreciation $950.00

Answer 1

b. Debit Depreciation Expense $950.00; credit Accumulated Depreciation $950.00

Step-by-step explanation:

The journal entry to record the depreciation expense is shown below:

Depreciation Expense A/c Dr $950.00

To Accumulated Depreciation A/c 950.00

(Being depreciation expense is recorded)

Since depreciation is an expense so this account should be debited and the accumulated depreciation reduces the balance of the fixed asset so this account should be credited. Both the accounts should be credited and debited for $950.00