Reference no: EM131765807

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