Need to know the journal entry for the sale of a depreciable asset with book value and remaining and some depreciation taken to date.
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Need to know the journal entry for the sale of a depreciable asset with book value and remaining and some depreciation taken to date.
First thing you need to do is get the depreciation up to date.
To record the sale of the asset the journal entry will be:
Debit cash for the amount of cash received
Debit Accounts Receivable if asset was sold on account
Debit Notes Receivable if customer signed a note for the asset
Debit Accumulated Depreciation for the amount of depreciation accumulated on the asset
Credit the Asset for the cost of the asset
If there is a difference between your debits and credits you will have one more account. If your difference is a debit you will have a Debit Loss on Sale of the asset for the amount of the difference. If your difference is a credit you will have a Credit Gain on Sale of Asset for the amount of the difference.
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