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:

Question

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The journal entry will include a debit to Cash for $15,000, a debit to Accumulated Depreciation for $30,000, and a credit to Equipment for $40,000. However, there is no need for a credit to Other Financing Sources as the sale of equipment does not generate revenue or increase the fund balance.

Equipment That Had Been Acquired Several Years Ago by a Special