Depreciation
Depreciation Adjusting Entry (Straight-Line)
Record periodic depreciation expense for fixed assets.
Scenario
Equipment cost $48,000, salvage $6,000, useful life 7 years. Record monthly depreciation.
Journal Entries
Monthly depreciation = (48,000-6,000)/84 = $500.
| Account | Debit | Credit |
|---|---|---|
| Depreciation Expense | $500 | |
| Accumulated Depreciation | $500 |
Explanation
Depreciation allocates asset cost over useful life while preserving original asset cost on books.
Variations
Annual entry possible if policy uses annual closes.
Common Mistakes to Avoid
- ✗Crediting asset directly instead of accumulated depreciation.
FAQs
Common questions about this journal entry
It preserves gross asset cost and shows contra-asset balance.
More Journal Entry Examples
Accounts Payable Journal EntriesPayroll Journal EntryAccrued Expenses Journal EntryUnearned Revenue Journal EntryBad Debt Expense Journal EntryPrepaid Expenses Journal EntryBonds Payable Journal EntriesStockholders' Equity Journal EntriesAccrued Expense Journal EntryDeferred Revenue Journal EntryPrepaid Expense Adjusting EntryAllowance Method for Bad DebtDeferred Revenue Journal EntryAccrued Expense Journal Entry at Month-EndPrepaid Expense Adjustment Journal EntryAllowance for Doubtful Accounts Journal EntryInventory Shrinkage Adjusting EntryDepreciation Adjusting Entry (Straight-Line)Unearned Revenue Refund Journal EntryInterest Expense Accrual Journal EntryOwner Draws Journal Entry (Sole Proprietor)Sales Returns and Allowances Journal EntryAccrued Revenue Journal EntryNotes Payable Interest Journal Entry