Ask Question
25 September, 03:33

Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of $30,000 existed at the time of the sale. The journal entry to be made in the governmental activities journal will include all of the following except:A) A debit to Cash for $15,000. B) A debit to Accumulated Depreciation for $30,000. C) A credit to Equipment for $40,000. D) A credit to Other Financing Sources for $5,000

+1
Answers (1)
  1. 25 September, 06:31
    0
    D) A credit to Other Financing Sources for $5,000

    Explanation:

    Since cash is received, you must record the $15,000 in the cash account. The accumulated depreciation account must be closed, and since accumulated depreciation has a credit balance, it is closed by debiting it. Equipment is an asset account with a debit balance and it also must be closed, ans you do that with a credit.

    Other financing sources is used to record non-revenue items such as proceeds from loans, leases, sales of bonds or notes, insurance recoveries, etc., not the sale of assets.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Accumulated ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers