Equipment in general governmental service 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

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The journal entry includes a debit to Cash for $15,000, a debit to Accumulated Depreciation for $30,000, and a credit to Equipment for $40,000, but it does not include a credit to Other Financing Sources for $5,000. The sale of the equipment resulted in a loss of $10,000 ($40,000 cost minus $30,000 accumulated depreciation minus $15,000 cash received), which must be recognized on the income statement. This loss cannot be credited to the Other Financing Sources account, which is typically used to record non-operating revenues and financing transactions that do not result in a loss or gain.

Equipment in General Governmental Service That Had Been Acquired Several