Journal Entries for Fixed Asset Sale (vehicle) fully depreciated

OLB1 · ‎October 25, 2023

We sold a car that has been fully depreciated in 1st year of the vehicle purchased.

We sold the vehicle for $50,000 the dealer will pay the loan payable and cut a check for the difference of $18,636.75.

How do you properly create journal entries for this situation?

Sell $50,000

Payment received $18,636.75

Loan Payable $31,412.13

Fixed Asset(vehicle) =$60,261.51

Fully Depreciated in one year $60,261.51

Rainflurry · ‎October 26, 2023

@OLB1

The journal entry to record the sale is below. You have significant gain on the sale since the vehicle was fully depreciated.

	Debit	Credit
Bank Account	18,636.75
Loan Payable (to close)	31,412.13
Accumulated Depreciation	60,261.51
Vehicle (Fixed Asset - to close)		60,261.51
Gain On Sale Of Asset (Other Income)		50,048.88

View solution in original post

Rainflurry · ‎October 26, 2023

@OLB1

The journal entry to record the sale is below. You have significant gain on the sale since the vehicle was fully depreciated.

	Debit	Credit
Bank Account	18,636.75
Loan Payable (to close)	31,412.13
Accumulated Depreciation	60,261.51
Vehicle (Fixed Asset - to close)		60,261.51
Gain On Sale Of Asset (Other Income)		50,048.88

OLB1 · ‎October 26, 2023

Thank you very much, that's was thought but need it confirmation.

Much appreciated.

FritzF · ‎October 31, 2023

Hi, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Stay safe and have a great rest of the day.

Topics

Training

Community

Resources

Journal Entries for Fixed Asset Sale (vehicle) fully depreciated