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DogMart Company records depreciation for equipment. Depreciation for the period ending December 31 is $1,400 for office equipment and $2,650 for production equipment. Prepare the two entries to record the depreciation.

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Answer:

December 31 (office equipment depreciation expense)

  • Dr Depreciation Expense - office equipment 1,400
  • Cr Accumulated Depreciation - office  equipment  1,400

Dec. 31 (production equipment depreciation expense)

  • Dr Depreciation Expense - production equipment 2,650
  • Cr Accumulated Depreciation - production  equipment   2,650

Explanation:

Since depreciation is an expense and it increases, it should be debited.

Since accumulated depreciation is a contra asset account and it increases, it should be credited.

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