shermah
Jun 4, 2008, 02:48 AM
okay... I have been working on this problem all night, but I can't seem to be in the right track. Ill first introduce the problem, and then I'll put what I have so far, if someone can please let me know what I'm doing wrong.
Adjusting Entry for December 31, 2007:
The buildings have a $10,000 residual value and a 40-year useful life. The straight-line depreciation method is used. The building was purchased on July 6, 2006.
So, what I did, the buildings were $180,000. So I followed the formula and I got, $4250.
(180,000-10,000) / 40).
BUT, now, I don't know what to do next because the building was purchased on July 6, 2006. AND how would I journalize this, would it be a regular depreciation entry?
I REALLY NEED HELP!! Thanks!
Adjusting Entry for December 31, 2007:
The buildings have a $10,000 residual value and a 40-year useful life. The straight-line depreciation method is used. The building was purchased on July 6, 2006.
So, what I did, the buildings were $180,000. So I followed the formula and I got, $4250.
(180,000-10,000) / 40).
BUT, now, I don't know what to do next because the building was purchased on July 6, 2006. AND how would I journalize this, would it be a regular depreciation entry?
I REALLY NEED HELP!! Thanks!