Answer:
depreciation expense 5,800 debit
acc dep - building 4,320 credit
acc dep - equipment 1,480 credit
Missing information
GRECO RESORT TRIAL BALANCE AUGUST 31, 2014
Buildings 120,000 Equipment 16,000
Explanation:
First, calcualte the depreciable amount:
cost less salvage value:
120,000 - 10% = 120,000 * (1 - 0.1) = 108,000
Now we multiply this by the depreciation rate which represent 1/useful life
108,000 x 4% = 108,000 x 0.04 = 4,320
We do the same with the equipment
16,000* (1 - 0.1) = 14,800 amount subject to depreciation
14,800 * 10% = 14,800 x 0.1 = 1,480
he adjusting entry will debit the depreciation expense and increase the accumulated depreciation of eahc asset
