Question

Demonstrate your knowledge of a depreciation adjusting entry by completing the following sentence. A depreciation adjustment would include a debit to (depreciation expense/accumulated depreciation/building) and (debit/credit) to (depreciation expense/accumulated depreciation/building).

Answer 1

A depreciation adjustment would include a debit to depreciation expense and credit to accumulated depreciation.

Explanation:

Depreciation expense - Reported on the income statement as any normal business expense.

Accumulated depreciation - total depreciation of an asset on purchase recorded on the balance sheet.