Two Company calculated depreciation on equipment to be 25000

Two Company calculated depreciation on equipment to be $25,000 in 2018. The adjusting entry on December 31, 2018 would include

A debit to accumulated depreciation for $25,000

Solution

A debit to depreciation expense for $25,000 Adjusting Entry on December 31, 2018 would include Particulars Debit Credit Depreciation Expense $       25,000 Accumulated Depreciation-Equipment $       25,000 (Being depreciation expense transferred to accumulated depreciation)