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    Kidkup_07's Avatar
    Kidkup_07 Posts: 2, Reputation: 1
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    #1

    Apr 24, 2006, 08:18 AM
    journalize this
    Acquired building ; the cost $200,000 ; with estimated life 40 years. It will be depreciated over 40 years using straight line depreciation. Salvage value $20,000.

    How do I journalize this?

    I have
    Cash $200,000
    Building $200,000

    The journal entries are only for 1 month
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 24, 2006, 07:05 PM
    At the time of purchase,

    Dr. Building 200,000
    Cr. Cash 200,000
    sharker's Avatar
    sharker Posts: 6, Reputation: 1
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    #3

    Feb 20, 2012, 03:56 AM
    To record purchase of building
    Building Dr $200000
    Cash Cr $200000
    (To record purchase of building on cash)
    Explanation|
    Increase of asset mean debit and decrease of asset dictates credit. When purchase of Building occurred. Building is asset which will increase or added to business. Cash is also a asset it will be decreases, hence it will be credit.
    At the end of the year journal entries for Depreciation will be Depreciation Dr Accum-Dep Cr. However it is not asked in the question but mentioned.
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