Question

At the end of its first year, the trial balance of Nygaard Company shows Equipment 532,900 and zero balances in Accumulated Depreciation-Equipment and Depreciation Expense. Depreciation for the year is estimated to be $4,400. Prepare the adjusting entry for depreciation at December 31.Post the adjustments to T-accounts.Indicate the balance sheet presentation of the equipment at December 31.

Answer 1

Answer:

Debit: Depreciation Equipment Expense: 4.400

Credit: Accumulated Depreciation Equipent: 4.400

Explanation:

As were never register any entry for Drepreciaton during the year, we must register the total ammount of the year.

The normal balance for the expense account is an expense and for the accumulated depreciation is a credit.

Lets go to see the T accounts:

            EQUIPMENT  

DEBIT                    CREDIT    

532 900,00  

 

           Accumulated Depreciation  

DEBIT                                            CREDIT    

                                                      4.400                                                                      

    Expense Depreciacion

DEBIT                           CREDIT    

4.400

BALANCE SHEET PRESENTATION:

ASSETS

FIXED ASSETS

EQUIPMENT                           532.000

Accumulated Depreciation     -4.400

NET FIXED ASSETS                                 528.500