Author Question: Assume that a general capital asset was sold for 2,500 . The asset was originally purchased for ... (Read 111 times)

lbcchick · **on:** Jul 5, 2018

Assume that a general capital asset was sold for 2,500 . The asset was originally purchased for 10,000 and has been in use for 3 years. It has an estimated life of 5 years.

What entry would be made in the General Fund to reflect this sale?

Debit Credit
A. Cash
General Capital Assets 2,500
2,500
B. Cash
Accumulated Depreciation
Loss on Sale of Capital Assets
General Capital Assets 2,500
6,000
1,500

10,000
C. Cash
Other Financing Sources 2,500
2,500
D. Cash
Loss on Sale of Capital Assets
General Capital Assets, net 2,500
1,500

4,000

Question 2

Whichofthefollowingisabusinesstransaction? e. purchaseinventoryon account f. planadvertisingforu pcomingsale g. giveemployeesaraise beginningnextmonth h. submitestimateforco nstructionproject