Question

At December 31, the unadjusted trial balance of H&R Tacks reports Equipment of $25,000 and zero balances in Accumulated Depreciation and Depreciation Expense. Depreciation for the period is estimated to be $5,000. Required: 1. Prepare the adjusting journal entry on December 31. 2. Prepare the T-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the adjusting journal entry on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 December 31 5,000 Depreciation Expense Accumulated Depreciation 5,000 Required 1 Required 2 >

Answer 1

Answer

• Requirement 1 is CORRECT.
  However, Credit the account “Accumulated Depreciation – Equipment” if its available.
• Requirement 2

Accumulated Depreciation - Equipment
Beg Bal		$0
		$5,000	Depreciation expense: 31 Dec Adj
End Bal		$5,000
Depreciation Expense
Beg Bal	$0
Accum Dep 31 Dec Adj	$5,000
End Bal	$5,000