Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry? Journal Entry #GJ 2 - DeprJournal dateJournal no.01/31x1GJ 2 - DeprACCOUNTDEBITSCREDITS DESCRIPTION1 189 Accumulated DepreciationJanuary depreciation on fixed assets100.002 649 Depreciation expense100.00 January depreciation on fixed assetsTotal100.00100.00

Journal entry are recorded based on golden rules of accounting. This means that all items which…

Answered: What is wrong with this entry?

Business

Accounting

What is wrong with this entry?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?

Journal Entry #GJ 2 - Depr
Journal date
Journal no.
01/31x1
GJ 2 - Depr
ACCOUNT
DEBITS
CREDITS DESCRIPTION
1 189 Accumulated Depreciation
January depreciation on fixed assets
100.00
2 649 Depreciation expense
100.00 January depreciation on fixed assets
Total
100.00
100.00

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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