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    Journal entries & calcutaions for asset sales are explained.

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    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

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    Your excel solution is attached. Thank you for using BrainMass.

    If the asset is not fully depreciated, you would need to make an adjusting entry and the amount not yet depreciated goes to a loss ...

    Solution Summary

    This solution explains how to handle the following accounting transactions:

    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

    $2.19

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