Which of the following journal entries is correct when a depreciable asset (building)is sold for cash subsequent to acquisition?
A) Cash
Accumulated depreciation
$ \quad $Loss on sale
$ \quad $Building
B) Cash
Building
$ \quad $Gain on sale
$ \quad $Accumulated depreciation
C) Cash
Accumulated depreciation
Loss on sale
$ \quad $Building
D) Cash
Gain on sale
$ \quad $Building

Question

Quizplus · Accepted Answer

When a depreciable asset is sold for cash subsequent to acquisition, the correct journal entry is to debit Cash, debit Accumulated Depreciation, debit Loss on Sale, and credit Building. This entry records the sale of the asset, the removal of the accumulated depreciation from the asset account, and the recognition of any loss on the sale.

Which of the Following Journal Entries Is Correct When a Depreciable