Depreciation of equipment is typically first entered in which accounting journal?

Depreciation of equipment is typically first entered in which accounting journal?

• A. General journal
• B. Cash receipts journal
• C. Sales journal
• D. Purchases journal

Answer: (A)

Depreciation entries are period-end adjustments that recognize the wear and use of equipment and align the expense with the period it benefits. Because depreciation is not a cash transaction, it’s entered as an adjusting entry in the general journal, typically debiting Depreciation Expense and crediting Accumulated Depreciation, then posted to the ledger. The specialized journals—cash receipts, sales, and purchases—track cash inflows and routine business transactions, not non-cash adjustments. So the general journal is the natural first place for recording depreciation.

Depreciation entries are period-end adjustments that recognize the wear and use of equipment and align the expense with the period it benefits. Because depreciation is not a cash transaction, it’s entered as an adjusting entry in the general journal, typically debiting Depreciation Expense and crediting Accumulated Depreciation, then posted to the ledger. The specialized journals—cash receipts, sales, and purchases—track cash inflows and routine business transactions, not non-cash adjustments. So the general journal is the natural first place for recording depreciation.