Which of the following journal entries is correct when a company owns its office building for many years and now sells the building?

Question

Quizplus · Accepted Answer

In this scenario, the company should record the sale of the building by debiting Cash (for the amount received) and crediting the Office Building asset account (for the carrying value of the building at the time of sale). Therefore, choice C is the only option that includes both of these entries. Choice A does not include a credit to the Office Building account, choice B includes an incorrect debit to the Gain on Sale account, and choice D includes an incorrect debit to the Accumulated Depreciation account.

Which of the Following Journal Entries Is Correct When a Company