If a company sells land that it was holding for future use, the company will 1) debit Cash for the amount it receives, 2) credit Land for the amount in the general ledger account that applies to the land being sold, and 3) record the difference as a gain or loss on sale of land.
How do you record the sale of land?
- Why isn't land depreciated?
- How do you divide the cost of real estate into land and building?
- What is the significance of FOB Shipping Point and FOB Destination?
- What is the difference between a land improvement and a leasehold improvement?
- What is the difference between accounts payable and accounts receivable?
- How do you calculate the gain or loss when an asset is sold?