Question
The storage building was self-constructed this year by DeeDee. The Company had their initial expenditure of $700,000 on January 1. They paid an additional $500,000
The storage building was self-constructed this year by DeeDee. The Company had their initial expenditure of $700,000 on January 1. They paid an additional $500,000 on March 1st , $300,000 on June 1st, and then the final payment of $150,000 on August 1st. when the building was completed and occupancy occurred. Payments to contractor were properly capitalized. The company has decided to use S/L method for depreciation. The storage building is estimated to have a life of 30 years and a salvage value of $250,000. The company will take a full year of depreciation in year of acquisition.
I need help with the adjusting entry.
I recorded:
Debit: Depreciation Expense - Storage Building [(1,650,000-250,000)/30] = 46,667
Credit: Accumulated Depreciation Expense - Storage Building 46,667
However, "Depreciation Expense - Storage Building," isn't an account option.
So I'm not sure if I'm recording the entry using the wrong accounts, or if I did the entire entry wrong.
Here are the accounts I can select from:
Cash |
Accounts Receivable |
Allowance for Doubtful Accounts |
Interest Receivable |
Merchandise Inventory |
Prepaid Insurance |
Prepaid Advertising |
Prepaid Rent |
Office Supplies |
Note Receivable |
Available for Sale Securities |
Office Building |
Accumulated Depreciation - Office Building |
Storage Building |
Accumulated Depreciation - Storage Building |
Land |
Leasehold Improvements |
Accumulated Depreciation - Leasehold Improvements |
Office Equipment |
Accumulated Depreciation - Office Equipment |
Patent |
Accounts Payable |
Sales Tax Payable |
Salaries Payable |
Payroll Taxes Payable |
Interest Payable |
Income Tax Payable |
Unearned Rent Revenue |
Loan Payable - Onstar Bank |
Loan Payable - Coldstar Bank |
Common Stock |
Additional Paid in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income |
Dividends |
Sales |
Sales Returns and Allowances |
Sales Discounts |
Cost of Goods Sold |
Sales Salaries Expense |
Office Salaries Expense |
Advertising Expense |
Depreciation Expense - Office Building |
Depreciation Expense - Leasehold Improvements |
Depreciation Expense - Office Equipment |
Leasing Expense - Stores |
Miscellaneous Selling Expense |
Rent Expense - Storage Facility |
Insurance Expense |
Office Supplies Expense |
Warranty Expense |
Miscellaneous Administrative Expense |
Rent Revenue |
Interest Revenue on Note Receivable |
Dividend Revenue on AFS Securities |
Bad Debt Expense |
Other Restricted Cash |
Patent Amortization Expense
|
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