On April 1 of the Current Year,a Company Disposed of an Automobile

question 36

Essay

On April 1 of the current year,a company disposed of an automobile that had cost $20,000.The auto had a salvage value of $2,000 and a useful life of five years.The accounting records showed accumulated depreciation for this automobile of $8,100 as of April 1 of the current year.The asset was discarded after an accident occurred and $10,500 cash was received from an insurance claim.
Prepare the journal entry to record the disposal of the automobile.

---

Definitions:

Alternative Courses

Different paths or strategies that can be chosen in decision-making processes to achieve a specific goal.

Actions

Deeds or steps taken in order to achieve a specific purpose.

Scenario Planning

A strategic planning method used to make flexible long-term plans based on different possible future scenarios.

Contingency Planning

The development of strategies and actions to prepare for and respond to unexpected events or emergencies that could negatively impact operations.