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 special revenue fund will include

Question

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In governmental accounting, the sale of capital assets in a special revenue fund is recorded as an "Other Financing Source" rather than a gain or loss. Therefore, the $15,000 cash received from the sale is credited to Other Financing Sources. The accumulated depreciation and equipment cost are not recorded in the special revenue fund's journal entry.

Equipment in General Governmental Service That Had Been Acquired Several