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Financial Accounting Formula Residual Value - Depreciation Cost Useful Life Depreciation Expense A building that cost $110,000, and has an estimated useful life of 40

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Financial Accounting Formula Residual Value - Depreciation Cost Useful Life Depreciation Expense A building that cost $110,000, and has an estimated useful life of 40 years and a residual value of $10,000, was purchased on July 1. 1. Record the adjusting journal entry on December 31 2. Prepare the T-accounts and the trial balance for the Building, Accumulated Depreciation and Depreciation Expense accounts for Year 1. 3. Prepare the PP&E section of the balance sheet for Year 1. 4. For Year 2 & 3, determine the amount or balance for the following accounts: a. Depreciation Expense b. Building c. Accumulated Depreciation d. Net Book Value of Building

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