Journal Entry for sale of real estate tied to a business loan (real estate & equipment)
The real estate should have been carried as a fixed asset, something like this fixed assets: 123 some street >> land: >> building: >> >> accum. depreciation building:
1. calculate and post partial year depreciation on the building (land is never depreciated) 2. create an income account called gain/loss on asset 3. journal entries
debit accum. depreciation building for the balance in the account, credit gain/loss debit gain/loss, credit building fixed asset account for the balance in the account debit gain/loss, credit land fixed asset account for the balance in the account
then use make deposits and in the other deposits section bank account where you deposited the profit, 410K loan liability account, -350K (negative 350K) gain/loss account, -35K, (negative 35K)
deposit will net to 25K as it should, the liability account will be zero.
You say "& equipment"
If the equipment was also a fixed asset, the same things need to done for the journal entries in steps 1 & 3, for each one