Equipment acquired several years ago by a capital projects fund and reported in the governmental activities statement of net position at a net book value of $2,000 was sold for $1,000 cash.Cash is collected in the General Fund.Journal entries are necessary in the general journals of the

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The General Fund received the cash, so a journal entry is needed in its general journal. The capital projects fund sold the equipment, so a journal entry is needed in its general journal. However, since the sale of the equipment is a disposal of a capital asset, the entry will be a debit to the capital projects fund's accumulated depreciation account and a credit to the equipment account, with any gain or loss reported in the governmental activities. Therefore, a journal entry is needed in the governmental activities' general journal as well. An enterprise fund is not involved in this transaction.

Equipment Acquired Several Years Ago by a Capital Projects Fund