Question

On jan 15 ABC Co sold a piece of land for 4000 when the original cost of the land was 4000. show how to journalize the transaction into the cash receipts journal by selecting all of the correct actions below
1. 4000 is entered in the cash dr column
2. sold land is entered in the explanation column
3. 4000 is entered into the other accounts cr column
4. land is entered into the accounts credited column

Answer 1

The correct actions to show the journalized transaction of the sale of the piece of land by ABC Co. are:

• 1. 4,000 is entered in the cash dr column
• 2. sold land is entered in the explanation column
• 3. 4,000 is entered into the other accounts cr column
• 4. land is entered into the accounts credited column

How to record the sale of the land?

When land is sold, as ABC Co just did, the cash account is to be debited by the amount the land was sold for. This is because cash is increasing from the sale and so, like normal assets, will be debited to show an increase.

Land will be credited with the value of the land which is $4, 000. This shows that the land is no longer owned by the company and like other assets, when an asset leaves a company, it is credited.

Find out more on recording the land at brainly.com/question/20714023

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