On a worksheet, the adjusting entry to account for depreciation of equipment consists of __________.

Debit to Depreciation Expense and a credit to Equipment

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Debit to Depreciation Expense and a credit to Accumulated Depreciation

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Debit to Equipment and a credit to Accumulated Depreciation

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Debit to Accumulated Depreciation and a credit to Equipment

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Solution

The correct option is B Debit to Depreciation Expense and a credit to Accumulated Depreciation
The basic journal entry for depreciation is to debit the Depreciation Expense account (which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets).

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