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Journal Entries for Fixed Asset Sale (vehicle) fully depreciated

We sold a car that has been fully depreciated in 1st year of the vehicle purchased.

We sold the vehicle for $50,000 the dealer will pay the loan payable and cut a check for the difference of $18,636.75.

How do you properly create journal entries for this situation?

Sell $50,000

Payment received $18,636.75

Loan Payable $31,412.13

Fixed Asset(vehicle) =$60,261.51

Fully Depreciated in one year $60,261.51

The journal entry to record the sale is below. You have significant gain on the sale since the vehicle was fully depreciated.

	Debit	Credit
Bank Account	18,636.75
Loan Payable (to close)	31,412.13
Accumulated Depreciation	60,261.51
Vehicle (Fixed Asset - to close)		60,261.51
Gain On Sale Of Asset (Other Income)		50,048.88

The journal entry to record the sale is below. You have significant gain on the sale since the vehicle was fully depreciated.

	Debit	Credit
Bank Account	18,636.75
Loan Payable (to close)	31,412.13
Accumulated Depreciation	60,261.51
Vehicle (Fixed Asset - to close)		60,261.51
Gain On Sale Of Asset (Other Income)		50,048.88

OLB1Author

Thank you very much, that's was thought but need it confirmation.

Much appreciated.

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