John's Tree Service depreciation for the month is $500. The adjusting journal entry is: O A. Depreciation Expense Equipment 500 500 O B. Accumulated Depreciation 500 Depreciation Expense 500 O C. Depreciation Expense 500 Accumulated Depreciation 500
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
![John's Tree Service depreciation for the month is $500. The adjusting journal entry is:
O A. Depreciation Expense
Equipment
500
500
B. Accumulated Depreciation
500
Depreciation Expense
500
OC. Depreciation Expense
500
Accumulated Depreciation
500
O D. Equipment
500
Accumulated Depreciation
500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f208bfe-ef15-4183-864f-7c1d61d49b01%2F0e22a698-e494-4e01-b58f-63068c569a10%2Fiwk9cvq_processed.jpeg&w=3840&q=75)
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