ABC, Inc. purchases a building on 5/1/2022 for $500,000. At…

ABC, Inc. purchases a building on 5/1/2022 for $500,000. At the time of the purchase they expect that the building will be used for 40-years and assume a $20,000 salvage value.  They use straight-line depreciation to depreciate the building.  Assume that ABC, Inc. prepares annual financial statements on 12/31 each year. What is the journal entry to record depreciation expense on 12/31/2022?  

ABC, Inc. borrows $100,000 on 9/1/2022. The loan is a 10-yea…

ABC, Inc. borrows $100,000 on 9/1/2022. The loan is a 10-year loan with annual payments of $12,329.00 due on 8/31 each year (so first payment is due on 8/31/2023) and has a 4% annual interest rate.  Assume that ABC, Inc. prepares annual financial statements on 12/31 each year.  What is the adjusting entry that ABC, Inc. need to record on 12/31/2022?