Purchase a NEW fixed asset for $10,000
Debit: Fixed Assets for $10,000
Credit: Accounts Payable for $10,000
Note: Only assets purchased after going "“live"” (on WinTeam Fixed Assets) are recorded as above. This transaction is not necessary for any fixed assets transferred into WinTeam from a previously used fixed asset system, since these “old” fixed assets should already be recorded in the WinTeam GL.
Pay the AP invoice created above:
Debit: Accounts Payable for $10,000
Credit: Cash for $10,000
Record the monthly depreciation (for all fixed assets, including those transferred into WinTeam)
Debit: Depreciation Expense $150 (hypothetical amount)
Credit: Accumulated Depreciation $150 (hypothetical amount)
Sell a fixed asset (break even):
Debit: Cash (or Accounts Receivable) $1,000
Credit: Gain/Loss on Sale of Assets $1,000
(To record the amount of the sale)Debit: Accumulated Depreciation $9,000
Debit: Gain/Loss on Sale of Assets $1,000
Credit: Fixed Assets $10,000
(Eliminate the asset from the GL)
Sell a fixed asset (at a gain):
Debit: Cash (or Accounts Receivable) $2,000
Credit: Gain/Loss on Sale of Assets $2,000
(To record the amount of the sale)
Debit: Accumulated Depreciation $9,000
Debit: Gain/Loss on Sale of Assets $1,000
Credit: Fixed Assets $10,000
(Eliminate the asset from the GL)
Sell a fixed asset (at a loss):
Debit: Cash (or Accounts Receivable) $100
Credit: Gain/Loss on Sale of Assets $100
(To record the amount of the sale)Debit: Accumulated Depreciation $9,000
Debit: Gain/Loss on Sale of Assets $1,000
Credit: Fixed Assets $10,000
(Eliminate the asset from the GL)
Dispose a fixed asset:
Debit: Accumulated Depreciation $9,000
Debit: Gain/Loss on Sale of Assets $1,000
Credit: Fixed Assets $10,000
For more information, see Disposing a Fixed Asset.