Journal entries & calcutaions for asset sales are explained.
Can someone please explain in detail (using excel) how I would book the following example:
1. An asset that was purchased in Feb. 2008 for $25,000 has been depreciating via straight line method for the past 4 years.
2. Then, we sold the asset in June 2012 for $1,800.
How do I book the transactions and what accounts do I need to hit?
Cash account is 100-1000
Asset account is 135-0000
Accumulated Depreciation account is 127-0001
Depreciation Expense account is 535-0050