Q2T1_6 - Horngren'S Financial And Managerial Accounting

Question

For each account listed, identify whether the account would appear in either the income statement section or the balance sheet section of the worksheet. Assuming normal balances, identify if the account would be recorded in the debit (DR) or credit (CR) column.

13. Accumulated Depreciation—Building

Step-by-Step Solution

Answer

Accumulated depreciation – Building is shown in Balance Sheet and recorded in debit (CR) column.

Step-by-Step-Solution

Step 1: Explanation on Balance sheet

Balance sheet reports the balances of assets, liabilities and equity as on particular date.

Step 2: Explanation on Accumulated Depreciation

Accumulated depreciation refers the total depreciation claimed on the furniture till date. It is shown under property, plant and equipment as a deduction to the related fixed asset. It gets increased by every credits.