Question
Asked Oct 11, 2019
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How would you journal this?

In 2017 Vail extended the building at a cost of 30,000. The extension provided an addition to the service potential of the building.

Original building info:

Purchase 1/1/14 at a cost of 50,000. Accumulated depreciation of $3,750 using straightline depreciation over 40 years with 0 residual value. 

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Step 1

The required journal ent...

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Post Debit Credit Date Account Title and Explanation Ref. (S) 30,000 (S) 2017 Building Cash |(to record the cost of extension of building) 30,000

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