3. Debits and Credits Depreciation Review & Impairment

Journal entry to record each year's depreciation

Debit Depreciation Expense, Credit Accumulated Depreciation - Equipment

ournal entry to record impairment loss

Debit Loss on Impairment for amount of impairment loss, Credit Accumulated Depreciation - Equipment for same amount

Entry to record depletion of natural resources

Debit Inventory for amount depleted for the year, Credit resource such as Silver Mine for same amount.

The credit to the resource account such as Silver Mine reduces the carrying value of the natural resource

4 flashcards