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happyoko2001
Jun 18, 2008, 06:15 AM
I have to prepare T-accounts with balances from the unadjusted trial balance.
In the Unadjusted Trial Blance, there are

1) Accumulated depreciation - A Cr $10000
2) Accumulated depreciation - B Cr $15000
.
.
.
10) Depreciation expense - A Dr $0
11) Depreciation expense - B Dr $0

Are these supposed to be included on the T-accounts? If so, which categories do theybelong to - assets, liabilities, or equity?

Please help! I'm stuck looking for an answer for last 3 hours:( :( :(

morgaine300
Jun 19, 2008, 08:59 PM
If you're supposed to prepare t accounts, then you need them for all accounts that have been used. The Depreciation Expense doesn't have a balance yet, but they will get used or they wouldn't have included them in the problem. So you'll still need the t accounts. (You don't need to write the 0 balance in though. Just make them and leave them blank until they're used.)

Expenses are, well, expenses. Accumulated Depreciation is a contra asset.