On January 1, Tolson Company purchased a building by paying $85,000. The building has an estimated life of 40 years and an estimated residual value of $5,000.

Required

Prepare journal entries to record the purchase and the related year-end adjusting entry

Prepare the journal entry to record the building purchase on January 1. PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 Prepare the journal entry to record the related year-end adjusting entry on December 31. PAGE 12 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 Adjusting Entries 2