Which journal entry reflects the adjusting entry needed on December 31?:

Last year, BOC purchased a building for $1,000,000. The expected life of the building is 20 years and its expected salvage value is $200,000. Now, it is December 31, the end of the fiscal year. No other entries were recorded for this building during the year.

No entry needed. The building was not purchased this year.

Dr. Depreciation Expense 50,000

Cr. Building 50,000

Dr. Depreciation Expense 50,000

Cr. Accumulated Depreciation 50,000

Dr. Depreciation Expense 40,000

Cr. Building 40,000

Dr. Depreciation Expense 40,000

Cr. Accumulated Depreciation 40,000

Dr. Depreciation Expense 40,000  

Cr. Accumulated Depreciation            40,000

Explanation:

Annual depreciation charge=cost-salvage value/useful life

cost is $1,000,000

salvage value is $200,000

useful life is 20 years

annual depreciation charge=($1,000,000-$200,000)/20=$40,000

every year end the depreciation expense account would debited with $40,000 while the accumulated depreciation would be credited with same amount.

The correct option is the last option,Dr depreciation expense $40,000 and Cr accumulated depreciation $40,000.

At the point there is no point posting directly into the asset account since the accumulated depreciation account is an offsetting account against the asset account in the balance sheet

Debit depreciation expense account with $40,000

Credit Accumulated Depreciation with $40,000

Explanation:

BOC purchased the building last year.

This year makes it the 2nd year this building has been purchased

The asset value is $1,000,000

Less The Salvage Value is $200,000

The Depreciable value of Asset is $800,000

Life span of Asset is 20years.

Meaning every year, depreciation expense will be $800,000 divided by 20 = $40,000.

At the end of this year, the depreciation charge will be posted thus:

Debit depreciation expense account with $40,000

Credit Accumulated Depreciation with $40,000

answer(c) factors of production;

the correct answer for apex is “ doubling a recipe and figuring out how many cups of paint to use are both examples of using math skills”.