October 30, 2016 admin

Buildings & Improvements—Accumulated Depreciation

Assets

BUILDINGS & IMPROVEMENTS—ACCUMULATED DEPRECIATION ASSET ACCOUNT
1715

ACCOUNT EXPLANATION
Accumulated depreciation of buildings and improvements.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly provision for depreciation of building SE
    Depreciation—Buildings & Improvements 8340
      Accumulated Depreciation—Buildings & Improvements 1715
             
  Sale of building for cash at a gain CR
    Cash in Bank—General 1001
    Accumulated Depreciation—Buildings & Improvements 1715
      Buildings & Improvements (Auto Business Only) 1710
      Gain or Loss—Sale of Fixed Assets & Securities 9250
COMMENTS
  • Useful lives of buildings vary according to the type of construction, use, and other factors. Guidelines issued by federal tax authorities contain allowable methods and rates of depreciation. Tax counsel should be consulted before adopting depreciation methods and rates.
  • Detailed fixed asset depreciation records should support this account.