Final answer:
Disposal typically requires one journal entry. When a company disposes of an asset, it needs to create a journal entry to record the transaction.
Step-by-step explanation:
Disposal typically requires one journal entry.
When a company disposes of an asset, it needs to record the transaction in its accounting records. This is done by creating a journal entry that reflects the disposal of the asset and any associated gains or losses. The specific accounts affected will depend on the nature of the asset being disposed of and the circumstances surrounding the disposal.
For example, if a company sells a piece of equipment, the journal entry would typically involve debiting the cash or accounts receivable account for the amount received from the sale, crediting the equipment account to remove its value from the books, and potentially crediting or debiting other accounts to account for any gains or losses from the sale.