[fpcfalford]

What journal entries need to be made when an asset (15 passenger van in this case) is sold. It is presently in the AUTOMOBILES on the Balance Sheet, and contains Accumulated Depreciation. The income was posted to the income account 'Proceeds for Sale of Assets' and I'm thinking that needs to hit the Balance Sheet some how to adjust the Asset Accounts for Autos and Accumulated Depreciation as well. Need accounting rules that would apply for the state of Mississippi.
Thanks.

[pready]

When you sale an asset the first thing you need to do is record your depreciation to get your accumulated depreciation up to date. For example; your asset recorded depreciation for year ending 2012 now you are selling your asset on March 31 in year 2013, you have to record depreciation for Jan, Feb, and Mar 2013. Your accounts will be Depreciation Expense and Accumulated Depreciation.

Now that your depreciation is up to date you can now record the sale of the asset. Your journal entry will look like this:
Debit Cash for the amount of cash received
Debit the Asset for the cost of the asset
Credit Accumulated Depreciation for the amount of depreciation accumulated by the asset being sold
And you will have either a Debit to Loss on disposal of an Asset for the difference between your debits and credits if your credits are more than your debits, or a Credit to Gain on disposal of an Asset for the difference between your debits and credits if your debits is more than your credits.