The journal entry to record an addition to an office building would include:
A) credit to depreciation expense.
B) credit to accumulated depreciation.
C) debit to repair expense.
D) debit to office building.

Question

Quizplus · Accepted Answer

An addition to an office building is a capital expenditure that increases the cost of the asset, so it should be recorded as a debit to the Office Building account. It is not a repair or maintenance expense, so options C and A are not correct. Accumulated depreciation is a contra asset account that is used to record the total amount of depreciation that has been charged to an asset, so option B does not apply in this case.

The Journal Entry to Record an Addition to an Office