What is the journal entry to record depreciation expense?
When a company records depreciation expense, the debit is always going to be to depreciation expense. The offsetting credit will be to accumulated depreciation, which is a contra-asset (negative) on the balance sheet.
Property, plant, and equipment is recorded at their book value (i.e. cost), and you must include accumulated depreciation to understand what the net-book-value of property, plant, and equipment is on the balance sheet!
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What the journal entry to record a purchase of equipment?
The purchase of property, plant, or equipment results in a debit to the asset section of the balance sheet. The credit is based on what form of payment you use as the customer. If you use cash, then you would credit cash. If you use credit card or another type of deferred payment, then you […]