Disposal of Fixed Assets

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This video shows how to account for the disposal of a fixed asset (aka long-lived asset). An example is presented to demonstrate the journal entry required to record the sale of a fixed asset. The video also explains how to calculate the gain or loss on the disposal.
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Опубликовано:

16 окт 2016

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Комментарии : 27

@Wiz99999 6 лет назад

Preparing for my final in Accounting 229, I appreciate the informative video. Keep up the fantastic work!

@hannahelliott1362 4 года назад

This helped so much! Thank you

@MyFinancialFocus 2 года назад

Nice. These videos are really good.

@Lola_bonnita2149 6 лет назад

Great video, it really helped me with my assignment after I had watched one which confused me on the matter.

@Edspira 6 лет назад

Awesome. Thanks for watching!

@thabisosibanda6109 5 лет назад

Thank you so much with this video it helped me

@candidacain2513 6 лет назад

I misplaced a note card I made on a Property Plant and Equipment video. It explained how to calculate the amount of retired equipment from the balance sheet. Do you know which video has it? It explains the debits and credit to arrive at the amount of retired assets.

@SidSwagTV 6 лет назад

Thank you so much. I got a great understanding of this topic after watching your video

@Edspira 6 лет назад

Awesome. Glad to help!

@icon818 7 лет назад

thank you sir

@saniahashmi8840 3 года назад

Yeah i understood that we had to credit the equipment since we are getting rid of it but would you please explain why we debited accumulated depreciation? I mean we have to subtract it to get the b.v right?

@alexyusufbumali4723 4 года назад

Thank you

@nasseryousif1222 4 года назад

And where does the debit balance of acumullated depreciation go on the balance sheet and trial balance ??????????? i need help plzz

@udriebadan2811 3 года назад

What to do with Depreciation expense ??? How to record it??? Should we credit back depreciation expense???

@simeon-1383 5 лет назад

I swear the disposals account debit and entry and opposite?

@joeybulford5266 4 года назад

Where does this go on the income statement? Is the $18,000 an operating expense, or is it other expenses?

@10003159 4 года назад

gains and losses are not part of core business operations. in this example, the business does not function by selling these machines. therefore gains and losses are non-operating income

@10003159 4 года назад

Didn't you skip a couple of steps? An asset that is being disposed of needs to be reclassified as a held-for-sale current asset, and for that to be the case it needs to pass a couple of qualifications such as 1) it is reasonable that it is going to be sold within the next year and 2) that a buyer for the asset is being seeked out

@lynnintan702 4 года назад

If it's sold on credit.. can it still be consider as disposal

@M.Evra91 2 года назад

Yes. But i imagine you would use an AR account rather than cash

@atifmj4994 2 года назад

may I ask one question so where comes proceeds from the sale🤔 i think that would be the value of after charged deprecation am I right sir hope to get your reply soon

@BHkpopfan 5 лет назад

why do we debit accumulated depreciation?

@rad1c1e 5 лет назад

We need to remove the depreciation as we are disposing of the asset.

@LyricalMusicFlow Год назад

@@rad1c1e Can you explain further by what it means to remove the depreciation, why do we do this

@rad1c1e Год назад

@@LyricalMusicFlow When I say remove the depreciation, I meant to say reverse it. When disposing of the asset, it needs to be fully removed, both the cost element and its associated depreciation. I hope this makes sense?