Equipment in general governmental service that had been acquired several years ago by a capital projects 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 debit to cash for $15,000. A debit to accumulated depreciation of $30,000. A credit to equipment for $40,000. All of the entries above will be made.
Equipment in general governmental service that had been acquired several years ago by a capital projects 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 debit to cash for $15,000. A debit to accumulated depreciation of $30,000. A credit to equipment for $40,000. All of the entries above will be made.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Equipment in general governmental service that had been acquired several years ago by a capital projects 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:
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A debit to cash for $15,000.
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A debit to accumulated depreciation of $30,000.
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A credit to equipment for $40,000.
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All of the entries above will be made.
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