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XYZ sold an asset with a cost of $25,000 and accumulated depreciation at the time of...

  1. XYZ sold an asset with a cost of $25,000 and accumulated depreciation at the time of sale of $15,000 for $11,500.  Prepare the journal entry for this transaction.
  2. The state of New Mexico acquired some land from XYZ using eminent domain for highway construction.  The land cost XYZ $500,000 but New Mexico gave them $350,000 for the land.  Prepare the journal entry for this transaction
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Answer #1
S. No. General Journal Debit Credit
1 Cash                11,500
Asset                  10,000
Profit on sale of asset                    1,500
(Being sale of asset recorded)
2 Cash             3,50,000
Loss on sale of land             1,50,000
Land              5,00,000
(Being sale of land recorded)
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