Ask Experts Questions for FREE Help !
Ask
    Muhammad Qamar's Avatar
    Muhammad Qamar Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 14, 2014, 01:29 AM
    What should be the narration for recording annual depreciation?
    What should be the narration for recording annual depreciation? i.e. Depreciation Exp. And Accumulated Depreciation
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Mar 14, 2014, 10:59 AM
    Your accounts are Depreciation Expense and Accumulated Depreciation.

    Your journal entry will be:
    Debit Depreciation Expense for the amount of depreciation
    Credit Accumulated Depreciation for the same amount

    This entry is used to match expenses to revenues in the period they occurred or were earned.

    Depreciation Expense is an expense account and Accumulated Depreciation is a contra asset account, which means is offsets an asset which will be a PP&E account.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Compute the annual depreciation cost using the straight-line method of depreciation. [ 3 Answers ]

On January 1, 2007, Kenyan Company had Notes Receivable of $11,000. The note receivable is from Brennan Company. It is a 4-month, 9% note dated December 31, 2006. During the year the following selected transactions occurred (Kenyan Company uses a periodic inventory system.). Jan. 5 Sold...

Beggening book value 2450.00 depreciation rate 40% what is the annual depreciation? [ 1 Answers ]

My beginning book value is 2,450.00 my depreciation rate is 40% what is my annual depreciation?

In recording plant assets, how do I calculate the annual depreciation? [ 1 Answers ]

I know the first year is the original cost minus the salvage value, divided by the years of useful life. How is the last month calculated? Say the original cost of a truck is $8,500 and minus a salvage value of $1,000, divided by a 5-year life. This equals $1500 for a full year, but if it was...

Adjusting the annual depreciation [ 1 Answers ]

If the accumulated depreciation (66000) is given in the original trial balance, how do I adjust the entry if the annual depreciation(13200) is given in the adjusted entries?

View more questions Search