Depreciation on an Office Building Is $2,800

question 66

Essay

Depreciation on an office building is $2,800. The adjusting entry on December 31 would be $$\begin{array} { | c | c | c | c | c | } \hline \text { Date } & \text { Description } & \text { Post. Ref. } & \text { Debit } & \text { Credit } \\\hline & & & & \\\hline & & & & \\\hline\end{array}$$

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Definitions:

Legal Authority

An entity or institution that has the legally granted power to make decisions, and to enforce laws or rules.

Financial Statement

A summary report that comprehensively shows a company's financial performance and position at a specific point in time, including the balance sheet, income statement, and cash flow statement.

Statement of Operations

A financial report detailing a company's revenues, expenses, and profits over a specific period, also known as an income statement.

Revenues

Income earned from normal business operations and other activities, often reflected at the top of an income statement.