Requirement 4. In preparation for preparing the adjusting entries, complete depreciation schedules for the first five years for the depreciable plant assets, assuming the assets were purchased on January 2, 2018 a. Building, straight-ine, 30 years, $40,000 residual value Click the icon to view the T-account balances from Requirement 3) Book Value BUILDING: Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Accumulated Date Cost Cost Life Expense Depreciation 1/1/2018 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 Accounts Payable 240,000 Bal. 1,890,000 Bal. 527,005 1,500 526,520 2,075 (2) Bal. 240,000 Bal. 1,890,000 Bal. Petty Cash Interest Payable Interest Revenue Bal. O Bal 7,500 Bal. 1,500 (2) 9,000 Bal. Bal 250 Note Payable 300,000 Bal. Accounts Receivable 240,000 Cost of Goods Sold 1.012,000 Bal. Bal 300,000 Bal. Bal 240,000 Bal. 1,012,000 Allowance for Bad Debts Common Stock 540.000 Bal Franchise Fee Expense 94,500 Bal. O Bal. 540,000 Bal. Bal. 94,500 Retained Earnings Merchandise Inventory 48,000 Salaries Expense 120.000 Bal Bal O Bal Bal. 48,000 Bal. 120,000 Dividends 22.000 Office Supplies Utilities Expense 13,500 1,344 22.000 1.344 Bal. 13.500 Insurance Expense Prepaid Insurance 3,800 BA Anl Interest Receivable Supplies Expense Bad Debts Expense Notes Receivable 220,000 Bal. Bal 220,000 Land Bank Expense 2.075 2.075 Bal. 110,000 Bal. 110,000 Credit Card Expense 1.000 Bal. Building 400,000 1.000 Bal. 400,000 Depr. Expense-Building Accum. Depr.-Building Depr. Expense-Store Fixtures Bal Store Fixtures 60,000 Bal Depr. Expense-Office Equipment Bal. 60,000 Bal 0 Accum. Depr.-Store Fixtures Amortization Expense-Franchise O Bal Office Equipment Bal. Office Equipment 3/31/2020 Reference Bal. 50,000 Interest Expense Bal. 50,000 Bal Accum. Depr.-Office Equipment Cash Short and Over Bal. O Bal. Bal. Franchise 54,000 Bal Bal. 54.000