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# 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

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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