Tuesday, June 5, 2012

Journal Entry Plant Assets

Use this chart to help record the sale of long term plant assets:


Type of Transaction
Journal Entry Account Name
Debit
Credit
Adjusting Entry bringing accumulated depreciation up to date
Depreciation Expense
Accumulated Depreciation- Asset
XXX

XXX
Journal Entry for recording the sale of asset with a gain
Accumulated Depreciation – Asset
Cash
Asset
Gain on Disposal
XXX
XXX


XXX
XXX
Journal Entry for recording the sale of an asset with loss
Accumulated Depreciation
Cash
Loss on Disposal
Asset
XXX
XXX
XXX




XXX
Record the retirement of an asset that is fully depreciated
Accumulated Depreciation – Asset
Asset
XXX

XXX
Record the retirement of an asset that has not been fully depreciated
Accumulated Depreciation – Asset
Loss on Disposal
Asset
XXX
XXX


XXX












 Remember to update all the accounts when selling long term plant assets!


No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.