On April 1 of the Current Year, a Company Disposed

question 82

Essay

On April 1 of the current year, a company disposed of an automobile that had cost $20,000. The auto had a residual 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.

---

Definitions:

National Authority

The centralized governing power in a nation, responsible for creating and enforcing laws, policies, and regulations.

Liberals

Individuals or groups advocating for policies that emphasize civil liberties, democratic governance, equality, and state support for social services.

Conservatives

Individuals or political groups that favor retaining traditional values and institutions, with a preference for minimal change and a cautious approach to social and political innovations.

Libertarians

Advocates for minimal government intervention in personal and economic matters, prioritizing individual liberty and free markets.