Debit Cash 1,200 Debit Accumulated Depreciation 7,200 Credit Gain on Sale 400 Credit Machinery 8,000 This journal entry removes accumulated depreciation and the asset from the books. The increase ...

That means it decreases the balance in the asset’s account. To increase the accumulated depreciation, the company credits the account. At the same time, they debit depreciation expense. Note ...

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Each year that you depreciate a building, you debit the amount to Depreciation Expense. You also credit the same figure to Accumulated Depreciation. The figure in the latter account increases over ...

If a debit is a natural balance recorded in the related account, the contra account records a credit. For example, the contra account for a fixed asset is accumulated depreciation. There are four ...