please answer with working 1 . Record the year-end adjusting entry for the depreciation expense of Building 2. Note: Enter debits before credits. 2. Record the year-end adjusting entry for the depreciation expense of Building 3. Note: Enter debits before credits. 3. Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits. 4. Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits.
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
please answer with working
1 . Record the year-end
2. Record the year-end adjusting entry for the depreciation expense of Building 3. Note: Enter debits before credits.
3. Record the year-end adjusting entry for the depreciation expense of Land Improvements 1. Note: Enter debits before credits.
4. Record the year-end adjusting entry for the depreciation expense of Land Improvements 2. Note: Enter debits before credits.
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On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land
Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $644,000,
with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to
last another 12 years with no salvage value. The land is valued at $1,736,000. The company also incurs the following
additional costs.
Cost to demolish Building 1
Cost of additional land grading
Cost to construct Building 3, having a useful life of 25 years and a $392,000 salvage value
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value
$ 328,400
175,400
2,202,000
164,000
3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were
in use.
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