How would you AJE dispose a memo fixed asset with no accumulated depreciation?

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1. To dispose of a memo fixed asset with no accumulated depreciation and no proceeds received, you would typically make an adjustment journal entry (AJE) to remove the asset from your books. Here’s how you can do this:

   1. Remove the asset from the Fixed Assets account: You will debit the Accumulated Depreciation (if there were any) and credit the Fixed Asset account to eliminate the asset. However, since the asset has no accumulated depreciation in this case, you’ll just credit the Fixed Asset.

   2. Record the entry as follows:

   3. Debit: Loss on Disposal of Asset (if applicable, but you mentioned no desire to record a gain or loss) – this could be a 0 amount or you can skip it altogether.

   4. Credit: Fixed Asset Account (for the full original cost of the asset).

   Here’s an example of the journal entry assuming the asset had a cost of $10,000:

   • Debit: Loss on Disposal of Asset (or simply leave this out) $0
   • Credit: Fixed Asset Account $10,000

   This entry effectively removes the asset from your balance sheet. Since you’ve mentioned that you do not wish to recognize any gain or loss, you can simply forego recording any loss on disposal—just ensure that the asset is appropriately removed from your financial records.

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