What are the correct journal entries for the sale of a business per the closing statement and associated closing entries for capital assets? Asset disposal is the removal of a long-term asset from the company's accounting records.It is an important concept because capital assets. Required: Show the journal entries to record this asset disposal transaction. Answer: Loss on Sale of Machinery Journal Entry. The journal entry to dispose of fixed assets affects several balance sheet accounts and one income statement account for the gain or loss from disposal. Objectives should be written for every phase of a business, such as sales, service, bookkeeping, advertising, employee relations and marketing. Basic Financial Statements: Government-Wide Financial Statements. Statement of Net Position .