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

question 104

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 5 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.

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Definitions:

Self-discrepancies

The differences between an individual's perceived actual, ideal, and ought selves, which can influence emotional states.

Self-discrepancy Theory

A theory that suggests individuals compare themselves to internal standards or the expectations of others, leading to various emotional outcomes based on perceived discrepancies.

Ideal Self

A person's conception of how they would like to be, representing their goals and aspirations in contrast to their actual self.

Actual Self

A concept referring to one's perception of their own attributes, abilities, and attitudes as they are currently.