• FirefoxInstall the new Firefox »
    Small Business


    Accounting Journal entry for depreciation?

    I am having a hard time with this journal entry: Purchased Land and a building for $90,000 cash. The building had a fair market value of $80,000 and the Land had a fair market value of $10,000. (The Building will be depreciated on a straight line basis over 20 years with an $8,000 residual value)
    a few seconds ago 1 Answer

    Best Answer

    Chosen by Asker
    Land is not depreciated, so there is no entry for that. Debit Depreciation Expense 3,600 Credit Accumulated Depreciation - Building 3,600 (80,000 - 8,000) / 20 = 3,600
    a few seconds ago

    Recommended Articles

    Yahoo Small Business Services