Question

If the beginning balance of the Accumulated Depreciation—Equipment account is $10,000 and an adjusting journal entry is recorded for depreciation on the equipment for $2,500, the balance of the accumulated depreciation account after the entry is recorded will be:

Answer 1

Answer:

$12500

Explanation:

Since the beginning balance of accumulated depreciation - equipment is $10 000

And an adjusting journal entry during the year was $2500

You must add the adjusting journal entry to the begging balance to get the closing balance of Accumulated Depreciation - equipment:

10000+2500=$12500