Sale of a Fixed Asset

[maggie122097]

I need help accounting for a sale of a Fixed asset and the $1000 gain that was made.

My employer sold a fixed asset (old vehicle) which was fully depreciated for $1000.00
I need to do a general journal for the sale of the asset.

I did:

(Fixed Asset acct) 1520-Automobile $12,323 CR
(Other Income acct) 7100-Loss/Gain on Sale $1000 DR
(Fixed Asset acct) 1599-Accum. Dep $11,323 DR

Is that correct? Do I have the correct accounts? It just looks like I am missing something.

 

[ColinCPA]

Sold for what? Cash? Credit? You aren't reflecting compensation anywhere in your entry. And why does your A/D balance differ from your asset balance if it is fully depreciated?

If your facts are correct, it should simply be:

Dr. Cash (or A/R) 1,000
Dr. Accum. dep 12,323
Cr. Automobile 12,323
Cr. Gain on sale 1,000

 

[maggie122097]

Thanks Colin.