Journal entries for the depreciation

Question

Accepted Answer

Depreciation journal entries are used to record the decrease in value of an asset over time.

Depreciation is a non-cash expense that reduces the value of an asset over its useful life.
The journal entry for depreciation includes a debit to Depreciation Expense and a credit to Accumulated Depreciation.
Depreciation can be calculated using different methods such as straight-line, double-declining balance, or units of production.
For example, if a company purchased a machine for $10,000 with a useful life of 5 years and a salvage value of $2,000, the annual depreciation expense would be $1,600 ($10,000 - $2,000 / 5).

Accepted Answer

Debit: Depreciation Expense

Credit: Accumulated Depreciation

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