A company records an entry to record $15,000 depreciation expense. Which of the following describes the...

A company records an entry to record $15,000 depreciation expense. Which of the following describes the entry? One Answer

	A.	Increase Property Plant and Equipment and increase Depreciation expense
	B.	Increase Depreciation expense and Increase Accumulated Depreciation- Property Plant and Equipment
	C.	Increase Property Plant and Equipment and Decrease Cash
	D.	Increase Depreciation expense and Decrease Cash

Expert Solution

The correct option is B.

The journal entry is

Depreciation expenses ....Dr

To accumulated depreciation

Hence both the accounts increase.

jeff jeffy answered 2 years ago

The Accountant for Herald Company forgot to make an adjusting entry to record depreciation expense for...

The Accountant for Herald Company forgot to make an adjusting entry to record depreciation expense for the year. The effect of this error would be: a) An overtstatement of equity and an undertstatement of assets. b) An understatement of equity and an overstatement of assets. c) An understatement of equity and assets. d) An overstatement of equity and assets. e) None of the above

Which of the following is included in the entry to record the issuance of 15,000 shares...

Which of the following is included in the entry to record the issuance of 15,000 shares of $9 par value common stock at $20 per share for cash? A.Common Stock is credited for $300,000. B. Paid−In Capital in Excess of Par—Common is debited for $165,000. C.Cash is debited for $300,000. D.Common Stock is debited for $135,000.

If a company does not record the adjustment entry to recognize the supplies expense then: a....

If a company does not record the adjustment entry to recognize the supplies expense then: a. net income would be overvalued b. assets would be undervalued c. expenses would be overrated d. retained earnings would be overvalued

15 a) If a company fails to make an adjusting entry to record supplies expense, then...

15 a) If a company fails to make an adjusting entry to record supplies expense, then a. owner's equity will be understated. b. expense will be understated. c. assets will be understated. d. net income will be understated. b. On June 1, during its first month of operations, Brodeur Spa purchased supplies for $4,200 and debited the supplies account for that amount. At June 30, an inventory of supplies showed $1,000 of supplies on hand. What adjusting journal entry should...

The journal entry a company records for the payment of interest, interest expense, and amortization of...

The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is A) debit Interest Expense, credit Cash B) debit Interest Expense, credit Interest Payable and Discount on Bonds Payable C) debit Interest Expense and Discount on Bonds Payable, credit Cash D) debit Interest Expense, credit Cash and Discount on Bonds Payable On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable...

1. The accountant for the Mobe Company made an adjusting entry to record depreciation for the...

1. The accountant for the Mobe Company made an adjusting entry to record depreciation for the current year twice by mistake. The effect of this error would be: A. An overstatement of assets offset by an understatement of owner’s equity. B. An understatement of assets, net income, and owner’s equity. C. An overstatement of assets and of net income, and an understatement of owner’s equity. D. An overstatement of net income and an understatement of assets. E. None of the...

Major Journal Entries – Test 03 Depreciation Expense Entry Patent Purchase Entry Amortization Expense Entry PP&E...

Major Journal Entries – Test 03 Depreciation Expense Entry Patent Purchase Entry Amortization Expense Entry PP&E Gain Entry PP&E Loss Entry PP&E Sold between Depreciation Dates (at a Gain) Step 1: Step 2: Short-Term Equity Purchase (Asset Issue) Short-Term Equity (Increase in the Year-End Value, Not Sold) Impairment Entry Bob Corporation needs your help with the double-declining-balance method of depreciation. Given the below information you should calculate the below two numbers. Invoice Price (Equipment Purchased) => 90,000 Setup Charges (Equipment...

Post the following journal entry: Depreciation expense must be recorded for the month of December. The...

Post the following journal entry: Depreciation expense must be recorded for the month of December. The building was purchased with cash on February 1, 2014 for $150,000 with a remaining useful life of 30 years and a salvage value of $6,000. The method of depreciation for the building is straight-line. The equipment was purchased with cash on February 1, 2014 for $60,000 with a remaining useful life of 5 years and a salvage value of $3,000. The method of depreciation...

An adjusting entry shows a debit to Depreciation Expense. The credit would be to Accumulated Depreciation....

An adjusting entry shows a debit to Depreciation Expense. The credit would be to Accumulated Depreciation. (T/F) ABC Co. provides contracting services to XYZ Co. XYZ paid ABC in advance (down payment). This would be deferred revenue for ABC. Co (T/F) To record depreciation for the month you would (A. dr. Accumulated Depreciation and cr. Depreciation Expenses) (B. dr. Depreciation Expenses and cr. Accumulated Depreciation) (C. dr. Depreciation Expense and cr. Cash) (D. none of these are correct) Adjusting entries...

1 - The journal entry a company uses to record the estimated product warranty liability expense...

1 - The journal entry a company uses to record the estimated product warranty liability expense is A. debit Product Warranty Expense; credit Product Warranty Payable B. debit Product Warranty Payable; credit Cash C. debit Product Warranty Payable; credit Product Warranty Expense D. debit Product Warranty Expense; credit Cash 2- Quick assets include A. cash, cash equivalents, receivables, and inventory B. cash, cash equivalents, receivables, prepaid expenses, and inventory C. cash, cash equivalents, and receivables D. cash, cash equivalents, receivables,...

Question