Smithson Transportation purchased $200,000 worth of machinery at the
beginning of the period. It has depreciated $9,000 during the period. Li
needs to record this depreciation on the income statement and the
balance sheet.
For both the income statement and the balance sheet, answer the
following questions:
• How much depreciation should she record?
In what account should she record this amount?
- Is it a debit or a credit?
What category does the account appear under on the financial
statement?