A company had a bulldozer destroyed by fire. The bulldozer originally cost 125,000. The accumulated depreciation on it was 60,000. The proceeds from the insurance company were 90,000. Record the entry for the company when the bulldozer is completely removed from the books.
Cash 90,000 DR Accumulated Depreciation 60,000 DR Equipment (Bulldozer) 125,000 CR Gain on Disposal of Bulldozer 25,000 CR DR = Debit CR = Credit The Gain on Disposal of Bulldozer could instead be a Gain on Fire loss if you'd prefer.
