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Level 1

how do you enter a Journal Entry for equipment that that you no longer use/not serviceable?

how do you enter a Journal Entry for equipment that that you no longer use/not serviceable?

Equipment is not longer repairable and out of service.

Loan for equipment was tied up with real estate loan.

Real estate was sold recently.

How do we make a journal entry for equipment/loan/sale of real estate? 

Are these 3 separate journal entries?

2 Comments
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Community Champion

how do you enter a Journal Entry for equipment that that you no longer use/not serviceable?

Equipment that is no longer used/servicable that is essentially "lost in the weeds" or left by road, dead is removed from balance sheet by reversal of original costs and depreciation.

 

No proceeds, fully depreciated. Debit all accumulated depreciation and credit the fixed asset.

 

The loan was simply borrowed money and the only changes to loans are principal reduction or write-off. Once you initially borrowed against the property to buy equipment you bought equipment and increased debt against property.

 

Sale of property is the most important journal entry and the reversal of the equipment can be tagged onto it but any action on loan will be tied to sale of property alone and not equipment

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Level 15

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