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how do you journalize the depreciation on the building for year 16? ULTETO Just-For- You Hardware Consultants purchased a building for $630,000 and depreciated it
how do you journalize the depreciation on the building for year 16?
ULTETO Just-For- You Hardware Consultants purchased a building for $630,000 and depreciated it on a straight-line basis over a 40 year period. The estimated residual value is $110,000. After using the building for 15 years, Just For You realized that wear and tear on the building would wear it out before 40 years and that the estimated residual value should be $100.000. Starting with the 15th year, Just For You began depreciating the building over a revised total life of 35 years using the new residual value. Journalize depreciation expense on the building for years 15 and 16. (Record debits first, then credits. Select the explanation on the last line of the oumalontry table) Begin by journalising the depreciation on the building for year 15. Date Credit Accounts and Explanation Depreciation Expense--Building Accumulated Depreciation-Building Debit 13,000 13,000 To record depreciation on building Now, journalize the depreciation on the building for year 16 Dobit Accounts and Explanation Credit DateStep by Step Solution
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