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

question 125

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,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:

Heroin

is an illegal opioid drug derived from morphine, highly addictive, and known for its euphoric effects.

Widely Used

Refers to something that is employed or adopted on a large scale across various regions or groups.

Drug

is a substance that alters the body's physiology or psychology when consumed. Drugs can be legal (prescription medications) or illegal (substances banned by law).

Rich

refers to individuals or entities possessing substantial wealth, assets, or financial resources, enabling a lifestyle of comfort and luxury.