Which of the following accounts are included in the journal entry to record depreciation expense for the period?

• A. Debit Accumulated Depreciation; Credit Depreciation Expense
• B. Debit Depreciation Expense; Credit Accumulated Depreciation
• C. Debit Depreciation Expense; Credit Equipment
• D. Debit Equipment; Credit Depreciation Expense

Answer: (B)

Verified step by step guidance

1. Understand the concept of depreciation: Depreciation is the allocation of the cost of a tangible asset over its useful life. It reflects the wear and tear or obsolescence of the asset over time.
2. Identify the correct accounts involved in recording depreciation: Depreciation Expense is an expense account that reflects the cost of using the asset during the period, and Accumulated Depreciation is a contra-asset account that reduces the value of the asset on the balance sheet.
3. Determine the correct journal entry format: The journal entry to record depreciation involves debiting the Depreciation Expense account to increase expenses and crediting the Accumulated Depreciation account to increase the contra-asset balance.
4. Eliminate incorrect options: Debit Accumulated Depreciation and Credit Depreciation Expense is incorrect because it reverses the proper treatment of these accounts. Debit Equipment and Credit Depreciation Expense is incorrect because depreciation does not directly affect the Equipment account.
5. Select the correct journal entry: Debit Depreciation Expense and Credit Accumulated Depreciation is the correct journal entry to record depreciation for the period, as it properly reflects the expense and the reduction in the asset's value.