Business closed down.
Terminal loss - asset classes (8, 13, 50)
Class 8:
-Four pieces of equipment sold - remainder scrapped/recycled
S8Asset sheet under Current Year Additions/Dispositions I inputted four asset dispositions.
I entered:
-Date, Cost, Proceeds
-YES to Full disposition and Terminal Loss cells
Bottom of S8Asset page under History of additions:
Entered YES in Disposed of? cell for each line.
Journal entries for the above dispositions were entered earlier in the year.
Class 13:
-renovations to retail space to make it operational when business opened. When business closed this was all left behind.
S8Asset sheet under Current Year Additions/Dispositions, I entered last day the business was in operation at retail location for transaction date.
-Entered the cost amount
-Entered $0 proceeds
-YES to Full disposition and Terminal Loss cells
At the bottom of S8Asset page under History of additions:
Entered YES in Disposed of? cell for each line.
Journal entry to clear off balance sheet
Debit Accumulated depreciation - Leasehold improvements $45,000
Debit Terminal loss on Disposal of Asset $55,000
Credit Leasehold improvements $100,000
Class 50:
Obsolete electronics - no value (UCC $50) - recycled
Took the same steps I took for class 13 because proceeds $0
Balance sheet - asset and accumulated depreciation accounts are all $0
Schedule 8 - UCC at the end of the year is $0 (terminal loss amounts on these three asset classes is what the opening UCC amount was).
Are there any other steps I need to take?