To Record Depreciation on Factory Equipment, the Needed Journal Entry

question 78

Multiple Choice

To record depreciation on factory equipment, the needed journal entry would include a

• A)credit to Manufacturing Overhead account.
• B)debit to Work-in-Process Inventory account.
• C)credit to Accumulated Depreciation account.
• D)debit to Factory Equipment account.

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Definitions:

Unadjusted Trial Balance

A preliminary report of all accounts in the general ledger before any adjusting entries are made to ensure debits equal credits.

Adjustments

Journal entries made to correct or update accounting records and financial statements, often at the end of an accounting period.

Prepayment of Expenses

The payment for goods or services before they are received or consumed, often recorded as an asset on the balance sheet until used.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred, ensuring that financial statements reflect accurate and up-to-date information.