At the end of its first year, the trial balance of Carla Vista Co. shows Equipment $22,900 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $2,900. Prepare the adjusting entry for depreciation at December 31.

Question

Business

Giselle Sutton

11 November, 16:28

At the end of its first year, the trial balance of Carla Vista Co. shows Equipment $22,900 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $2,900. Prepare the adjusting entry for depreciation at December 31.

+1

Answers (1)

Know the Answer?

Charlie Skinner · Answer 1

The journal entry is shown below:

Explanation:

The adjusting entry which is to be posted or recorded for the depreciation at December 31, will be:

Depreciation Expense A/c ... Dr $2,900

Accumulated Depreciation - Equipment ... Cr $2,900

The journal entry is recorded for the depreciation, so the accumulated depreciation is credited because it is the total amount of the depreciation expense which is to be charged against the fixed assets and the depreciation expense is debited in order to offset the accumulated depreciation.