Where would the depreciation of equipment first be entered in accounting records?

The depreciation of equipment would first be entered in the general journal. This is because the general journal serves as the primary book of entry in accounting, where all transactions are recorded in chronological order. It captures the details of each transaction, including which accounts are affected and the amounts involved.

When recording depreciation, the journal entry typically involves debiting the depreciation expense account and crediting the accumulated depreciation account. This process allows for a clear and organized record of depreciation expenses over time, which can then be posted to the general ledger for more comprehensive financial reporting.

The general ledger is where all journal entries are eventually summarized for reporting purposes, but the initial entry occurs in the general journal. The cash flow statement and income statement are financial statements that display results of operations and cash flows, but they do not serve as the initial recording point for transactions, including equipment depreciation.