On January 1, 2017, Windsor Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $53,600 salvage value, $768,000 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $91,000 cost The building has been depreciated under the double-declining-balance method through 2020. In 2021, the company decided to switch to the straight-line method of depreciation. Windsor also decided to change the total useful life of the equipment to 9 years, with a salvage value of $5,200 at the end of that time. The equipment is depreciated using the straight-line method. (a) Prepare the journal entry necessary to record the depreciation expense on the building in 2021. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (b) Compute depreciation expense on the equipment for 2021, (Round answers to 0 decimal places, e.g. 125.) 2021 Depreciation expense

On January 1, 2017, Windsor Company purchased a building and equipment that have the following useful lives, salvage values, and costs. Building, 40-year estimated useful life, $53,600 salvage value, $768,000 cost Equipment, 12-year estimated useful life, $10,000 salvage value, $91,000 cost The building has been depreciated under the double-declining-balance method through 2020. In 2021, the company decided to switch to the straight-line method of depreciation. Windsor also decided to change the total useful life of the equipment to 9 years, with a salvage value of $5,200 at the end of that time. The equipment is depreciated using the straight-line method. (a) Prepare the journal entry necessary to record the depreciation expense on the building in 2021. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (b) Compute depreciation expense on the equipment for 2021, (Round answers to 0 decimal places, e.g. 125.) 2021 Depreciation expense

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

On January 1, 2017, Windsor Company purchased a building and equipment that have the following useful lives, salvage values, and costs.
Building, 40-year estimated useful life, $53,,600 salvage value, $768,000 cost
Equipment, 12-year estimated useful life, $10,000 salvage value, $91,000 cost
The building has been depreciated under the double-declining balance method through 2020. In 2021, the company decided to switch to the straight-line method of depreciation. Windsor
also decided to change the total useful life of the equipment to 9 years, with a salvage value of $5,200 at the end of that time. The equipment is depreciated using the straight-line
method.
(a) Prepare the journal entry necessary to record the depreciation expense on the building in 2021. (Round answers to 0 decimal places, e.g. 125. Credit account titles are
automatically Indented when amount Is entered. Do not indent manually, If no entry is required, select "No Entry" Por the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(b) Compute depreciation expense on the equipment for 2021. (Round answers to 0 dec/mal places,e.9. 125.)
2021 Depreciation expense

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