While Amy supervised, Heather, the accounting intern, continued to record accoun

Question

While Amy supervised, Heather, the accounting intern, continued to record accounting events that took place at Arnold and Post at the end of the period. Besides events that document the firm’s transactions with clients, Amy also asked Heather to record the closing entry for the depreciation of the office equipment. Amy had recorded an adjusting entry of $600 to the Accumulated Depreciation - Office Equipment.

In order to close the this account, Heather will record a debit to the account (A)__________, and a credit to the account (B)__________ for $600.

Explanation / Answer

Amy passed an adjusting entry of $600 to the Accumulated Depreciation - Office Equipment:

Entry passed would be:

Depreciation a/c Dr $600

To Accumulated Depreciation - Office Equipment $600

Actual Entry to be passed:

Depreciation a/c Dr $600

To Office Equipment a/c $600

So in order to close Accumulated Deprecciation a/c, the following entry should be passed:

Accumulated Depreciation - Office Equipment Dr $600

To Office Equipment a/c $600

Answer is:

(A Accumulated Depreciation - Office Equipment

(B) Office Equipment

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