The journal entry on December 30, 2022, for Halcyon Company is:
Debit Assets Disposal $58,775
Debit Loss on Disposal $16,225
Credit Equipment $75,000
Asset disposal is an attempt to write off an asset from the financial books of a company.
The asset disposal may be based on the sale of the old equipment or discarded due to obsolescence.
The appropriate journal entry is to credit the asset account while the disposal of the asset account is credited with the book value.
January 2, 2019:
Purchase of equipment for $75,000
Book value on December 30, 2022 = $16,225
Decision = discard the equipment
Accumulated depreciation on December 30, 2022 = $58,775 ($75,000 - $16,225)
Accumulated depreciation $58,775 Assets Disposal $58,775
Assets Disposal $58,775 Loss on Disposal $16,225 Equipment $75,000
Thus, the appropriate journal entry is to debit the Assets Disposal account and the Loss on Disposal account while crediting the Equipment account with $75,000.
Learn more about recording assets disposal at https://brainly.com/question/14542603
