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 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