Depreciation for the year is estimated to be $2,750. Record the adjustment for depreciation in the tabular summary and indicate the adjusted balance in each account. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Question

Isiah Mcdowell

Business

22 March, 08:16

Depreciation for the year is estimated to be $2,750. Record the adjustment for depreciation in the tabular summary and indicate the adjusted balance in each account. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

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Malachi Middleton · Answer 1

Entry for depreciation recognition:

Dr Depreciation Expense $2750

Cr Accumulated Depreciation $2750

Explanation:

Now we will add depreciation expense to the total expense which shows an increase in expenses. Likewise the accumulated depreciation will also be increased by $2750 which means it must be added to accumulated depreciated and entered as increase in the box with a positive sign.