Disposal with Trade-In and Cash Proceeds

Item number 27828 has this current account information:

• Asset cost: 50,000.

• Accumulated depreciation: -25, 000.

• Net book value: 25,000.

This asset is being sold for 10,000.

These tasks need to be completed:

1. Record and post the cash to GL and Fixed Assets (Cash Receipt Journal Entry):

   Account Number	Account Description	Debit	Credit
   50.1110.BEAR	Cash	10,000	N/A
   YARD.9113	Cash/Clearing account	N/A	10,000 (Item number 27828)

2. Create a new Asset Master Record, Item number 27836.

3. Create disposal entries follows:

   Account number	Account Description	Debit	Credit
   50.2030	Cost	N/A	50,000 (Item number 27828)
   50.2130	Accumulated Depreciation	25,000 (Item number 27828)	N/A
   50.2030	Net Book Value	25,000 (Item number 27836)	N/A
   YARD.9111	Proceeds from sale of assets	N/A	10,000 (Item number 27828)
   YARD.9113	Cash/Clearing Account	10,000 (Item number 27828)	N/A