When do you make a journal entry for depreciation? Do you set up an account for depreciation when you make the purchase of equipment, or do you wait to depreciate?
Thanks!
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When do you make a journal entry for depreciation? Do you set up an account for depreciation when you make the purchase of equipment, or do you wait to depreciate?
Thanks!
Usually this is an adjusting entry at the end of an accounting period. Your journal entry will be:
Debit Depreciation Expense for the amount of depreciation
Credit Accumulated Depreciation for the amount of depreciation
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