A local government recorded the sale of a capital asset at a gain by recording a debit to cash and credit to proceeds of sale of capital asset. What is the worksheet entry when preparing the government-wide statements?

Multiple Choice

• Debit to Cash and credit to capital asset (net) and credit to Gain on sale of capital asset.

• Debit to Proceeds of sale of capital asset and credit to capital asset (net) and credit Gain on sale of capital asset.

• None of the above.

• Debit to Proceeds of sale of capital asset and credit to Gain on sale of capital asset.