| Depreciation expense is the current deduction for the allocation of the cost of a fixed asset, spread over the useful life of the asset. Use the general journal entry feature to enter depreciation in your accounting records. You might want to confer with your accountant before making this entry because accountants often provide their clients with the entries needed for recording depreciation. You can enter depreciation monthly, quarterly, or annually; typically, the frequency of the depreciation entry coincides with the frequency with which you issue financial statements for your company. - Select Make General Journal Entries from the Company menu.
- Verify that the date and journal entry number are correct, and make any necessary changes.
- Enter the account you use for recording depreciation expense.
- Enter the amount of the depreciation expense in the Debit column.
- Enter a brief, descriptive memo.
- Enter the asset account you use to record accumulated depreciation.
- Verify the accuracy of the credit amount that automatically appears, or enter the correct amount.
- Click a save option.
See Also See "Making Journal Entries" on page 253 for information on using the general journal entry feature. |
Did You Know? You probably won't use the Name column. The Name column is used for assigning journal entry amounts to specific customers. Unless you are charging this depreciation to a customer, you can leave the Name column of the journal entry blank. |
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