Prepare the journal entry to record the sale of the building on Windsor's books, assuming 6 years of depreciation has alreadybeen recorded in the accounts to the date of disposal. The building was sold for $3,598,000 cash. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts. List all debit entries before credit entries.)DateAccount Titles and ExplanationDebitCredit urrent Attempt in ProgressWindsor Ltd. owned several manufacturing facilities. On September 15 of the current year, Windsor decided to sell one of itsmanufacturing buildings. The building had cost $5,140,000 when originally purchased 6 years ago and had been depreciated using thestraight-line method with no residual value. Windsor estimated that the building had a 20-year life when purchased.(a)

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Description: Prepare the journal entry to record the sale of the building on Windsor's books, assuming 6 years of depreciation has alreadybeen recorded in the accounts to the date of disposal. The building was sold for $3,598,000 cash. (Credit account titles are

Formula of annual depreciation under SLM.Annual Depreciation (straight line method) = (Cost of the…

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Windsor Ltd. owned several manufacturing facilities. On September 15 of the current year, Windsor decided to sell one of its manufacturing buildings. The building had cost $5,140,000 when originally purchased 6 years ago and had been depreciated using the straight-line method with no residual value. Windsor estimated that the building had a 20-year life when purchased.

Windsor Ltd. owned several manufacturing facilities. On September 15 of the current year, Windsor decided to sell one of its manufacturing buildings. The building had cost $5,140,000 when originally purchased 6 years ago and had been depreciated using the straight-line method with no residual value. Windsor estimated that the building had a 20-year life when purchased.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Prepare the journal entry to record the sale of the building on Windsor's books, assuming 6 years of depreciation has already
been recorded in the accounts to the date of disposal. The building was sold for $3,598,000 cash. (Credit account titles are
automatically indented when the 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. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit

urrent Attempt in Progress
Windsor Ltd. owned several manufacturing facilities. On September 15 of the current year, Windsor decided to sell one of its
manufacturing buildings. The building had cost $5,140,000 when originally purchased 6 years ago and had been depreciated using the
straight-line method with no residual value. Windsor estimated that the building had a 20-year life when purchased.
(a)

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