In unadjusted trial balance, freehold land (at cost) is 148,000, office building (at cost) is 360,000, accumulated depreciation -office building of 86,400 and administrative expense is 45,300

Question:

It is the company’s policy to use the cost model for freehold land and building, and to depreciate office building on a straight-line basis. The useful life of office building is 25 years with no salvage value. Depreciation expense is allocated as “administrative expense”. No entry was made for the 2019 depreciation.

What will be the adjusting entries?

Answer rating: 100% (QA)

To calculate the adjusting entries for the depreciation of the office building we need to determine ... View the full answer